Tesla has executed a $16.5 billion agreement with Samsung to acquire its forthcoming AI Chips
Elon Musk announced on X late Sunday evening that Samsung’s newly constructed Texas manufacturing facility will exclusively produce Tesla’s next-generation AI6 chip. “The strategic significance of this is difficult to overstate.”
Tesla’s AI6 (AKA Hardware 6) chip is the company’s investment in a single processor design that can power its Full Self-Driving (Supervised) driver assistance system, Tesla’s Optimus humanoid robots, and high-performance AI training in data centers.
Musk disclosed that Tesla is collaborating with TSMC to manufacture AI5 processors, which have recently completed the design phase. Initial production of the AI5, a generation that is predominantly designed for FSD, will take place at TSMC’s Taiwan factory and its Arizona facility. According to Musk, Samsung has already manufactured the AI4 chip.
Samsung has been unable to initiate its chip-making project due to its inability to recruit and retain significant clients. Consequently, the agreement will provide a substantial boost to the company. Musk stated in a separate post that Tesla may ultimately spend more than $16.5 billion on Samsung processors.
“The actual output is likely to be several times greater,” he stated.
Musk stated in a subsequent post that Samsung had consented to Tesla’s participation in optimizing manufacturing efficiency.
“This is a critical point, as I will personally walk the line to expedite the pace of progress.” Musk wrote, “And the factory is conveniently near my residence.”
In 2019, Tesla transitioned from Nvidia’s Drive platform to its custom processor. That year, the FSD Computer (FSDC) or Hardware 3 was introduced in the company’s electric vehicles.
The Samsung FSDC is a design choice that aims to establish the necessary redundancy for any automated drive system. It comprises two identical systems situated adjacent to one another on a single board.
Since then, the organization has increased its focus on its custom processors in tandem with its objectives. Tesla’s transition from an automaker to an AI and robotics corporation is centered around the AI chips.