Tesla Teams Up With Samsung in 16 Billion Dollar AI Chip Supply Deal

What Happened

Tesla has announced a USD 16.5 billion agreement with Samsung, under which Samsung will provide AI chips for Tesla\’s autonomous and electric vehicles. The deal, unveiled by Elon Musk, highlights Samsung\’s expanding role as a key supplier of advanced semiconductors to leading automotive companies. The new AI chips are expected to play a critical part in Tesla\’s efforts to advance self-driving features and improve in-car technology, supporting its global ambitions in electric mobility. With this partnership, the companies are set to further integrate AI hardware into next-generation vehicle systems.

Why It Matters

This massive chip supply deal strengthens Tesla\’s supply chain resilience amid worldwide semiconductor demand and underscores a growing trend of automakers partnering with tech giants for custom AI hardware. The move signals intensifying competition in autonomous driving tech and demonstrates how collaboration between automotive and electronics leaders is reshaping innovation in electric mobility. Read more in our Mobility & Space Hub