Tesla announces an agreement with Samsung for the supply of artificial intelligence chips worth $16.5 billion

Elon Musk himself has officially confirmed the agreement reached with Samsung for the supply of chips intended for artificial intelligence applications, with an estimated value of $16.5 billion through 2033. This news, which initially circulated as a rumour in specialised media, has been very well received by the stock markets, causing a subsequent 3.5 percent rise in Samsung’s share price and a similar percentage in those of Tesla.

Although the South Korean company has not made an official statement about this agreement, there is no doubt that signing this contract represents a significant step forward in its strategy to consolidate its position in the advanced chip market, where TSMC is today the dominant player with a 67.6 percent market share.

According to the head of Tesla, Samsung’s new plant in Texas will be dedicated exclusively to producing the next-generation AI6 chip for Tesla. Likewise, TSMC will be responsible for manufacturing the AI5 chip, with initial production in Taiwan and later expansion to Arizona. This move reflects Tesla’s strategy focused on diversifying its suppliers, with the ultimate goal of strengthening the company’s position in the development of autonomous driving technologies.

The new Texas plant is of vital importance for both Samsung and Tesla

Samsung, the world leader in memory chip manufacturing, already supplies Tesla with fourth-generation artificial intelligence chips. However, TSMC will produce the fifth-generation chips for the American company, just as Samsung does.

Although the South Korean firm had faced difficulties in the construction project of its Texas plant that had suggested the possibility of a delay in its start-up until 2026, this agreement announced with Tesla now confirms that the chip production plant will adhere to the launch timelines initially announced.