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Tesla Signs $16.5 Billion Contract With Samsung To Make AI Chips 45

Posted by BeauHD from the big-chip-energy dept.
An anonymous reader quotes a report from CNBC: Samsung Electronics has entered into a $16.5 billion contract for supplying semiconductors to Tesla, based on a regulatory filing by the South Korean firm and Tesla CEO Elon Musk's posts on X. The memory chipmaker, which had not named the counterparty, mentioned in its filing that the effective start date of the contract was July 26, 2025 -- receipt of orders -- and its end date was Dec. 31, 2033. However, Musk later confirmed in a reply to a post on social media platform X that Tesla was the counterparty.

He also posted: "Samsung's giant new Texas fab will be dedicated to making Tesla's next-generation AI6 chip. The strategic importance of this is hard to overstate. Samsung currently makes AI4.TSMC will make AI5, which just finished design, initially in Taiwan and then Arizona. Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress," Musk said on X, and suggested that the deal with Samsung could likely be even larger than the announced $16.5 billion.

Samsung earlier said that details of the deal, including the name of the counterparty, will not be disclosed until the end of 2033, citing a request from the second party "to protect trade secrets," according to a Google translation of the filing in Korean on Monday. "Since the main contents of the contract have not been disclosed due to the need to maintain business confidentiality, investors are advised to invest carefully considering the possibility of changes or termination of the contract," the company said.

Tesla Signs $16.5 Billion Contract With Samsung To Make AI Chips More | Reply

Tesla Signs $16.5 Billion Contract With Samsung To Make AI Chips

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  • This is a critical point, as I will walk the line personally to accelerate the pace of progress,

    Is he going to hand solder the pins on the chips? This sounds like something Kim Jong Un would say. As if he knows more than a multi-billon dollar international company whose had decades of experience making chips.

    • Re: (Score:2)

      by GoTeam ( 5042081 )

      Is he going to hand solder the pins on the chips?

      It would be fun to watch for a bit...

    • Re: (Score:2, Interesting)

      by SB5407 ( 4372273 )
      I will walk the line personally to accelerate the pace of progress," Musk said on X
      Yep, that does not inspire confidence. If these chips were going to be sold to many different buyers, that line right there would make me question Samsung's prospects. But since they're just for Tesla, go ahead, let Elon mess it up. If the contract language is tight with respect for protection for Samsung, it won't be any skin off of Samsung's back. However, if Samsung has too much skin in the game, that's a big risk. Elon

  • Did Samsung demand that up front? (Score:4, Insightful)

    by ebunga ( 95613 ) on Monday July 28, 2025 @04:23PM (#65551082)

    Because they should really make sure they get paid the $16.5bil up front.

    • Re: (Score:2)

      by storkus ( 179708 )

      I'm not going to bother looking for links including previous stories here on /. that you can find on your own easily, but just a reminder that Samsung Electronics and Foundry ops are in a huge hole financially as so most previous customers have bailed for TSMC, so basically Elon is likely getting fab & ASIC engineering for a lot cheaper than competitors in exchange for the "investment". This also keeps the Texas fab afloat so the Chips Act money keeps coming.

    • Re: (Score:1)

      by tokul ( 682258 )

      Space Karen does not have reputation of his mate Pumpkin.

      He just sells snake oil to idiots and Samsung will get part of his profits.

  • You have the RIGHT to vibe-code while driving. Don't let ANYONE take it away.
  • So not manufactured in the USA ?
    Those tariffs could hurt.
    • Buying non-American made stuff doesn't seem an issue with MAGA. Look at how much of that overpriced, Chinese-made Yeti stuff they fawn over when buying.

      • Buying non-American made stuff doesn't seem an issue with MAGA. Look at how much of that overpriced, Chinese-made Yeti stuff they fawn over when buying.

        Not disputing your point, but your Yeti comment threw me. I thought you paid more because the Tundra/LoadOuts were made in the USA. I'm far from MAGA, but my almost 10yo yeti mug is used 3-4x daily, hence the prolific slashdot commenting, and looks brand new.

        • Re: (Score:2)

          by ceoyoyo ( 59147 )

          I've got a steel 1 L bottle about the same age that goes camping and kayaking a lot and mostly rolls around the car the rest of the time. Mine was free swag at a conference, but I've definitely gotten the $65 CAN they apparently cost out of it.

    • The "summary" (which I guess is just the whole article these days) says "TSMC will make AI5, which just finished design, initially in Taiwan and then Arizona."

    • Re: (Score:2)

      by XXongo ( 3986865 )

      So not manufactured in the USA ? Those tariffs could hurt.

      According to the second paragraph of the summary:

      "Samsung's giant new Texas fab will be dedicated to making Tesla's next-generation AI6 chip."

      So: yes, manufactured in the USA.

  • Samsung earlier said that details of the deal, including the name of the counterparty, will not be disclosed until the end of 2033, citing a request from the second party "to protect trade secrets,"

    So, did Musk just violate his own NDA? Can't help but wonder if there will be any consequences to this.

    • Re: (Score:2)

      by bjoast ( 1310293 )
      It of course depends on how the NDA was written. From the way the statement reads, the NDA and the timeline seems to have been requested by Tesla, possibly as a result of standard procedure if one is to speculate.
  • I'm not going to by anything from the pedonazi.

  • Will my six-year old Model 3 with FSD, like fully self-drive because of this?

    No wait, I don't care; it goes next month to be replaced by a Porsche EV. That's what having an unstable Nazi as a CEO does to potential repeat buyers. Getting the orange one into power and laughing along as he threatens my country with becoming the 51st "state" made sure I sold it as soon as I could.

    • They super pinky swear promise that this time HW5 will feature FSD. Just like they super pinky swore that HW4 will feature FSD, and HW3, and HW2 ... they made no claims about their original computer though.

  • Musk: "... I will walk the line personally to accelerate the pace of progress"

    Samsung: "...investors are advised to invest carefully considering the possibility of changes or termination of the contract"

    I'm sure that Musk striding around the fab in a bunny suit will have a massive effect on production, and I'm certain the investors will have nothing to worry about.

    • Re: (Score:1)

      by gweihir ( 88907 )

      That is because Samsung is a respectable business, while Musk is a clown with an inferiority complex that uses money as a personality surrogate.

  • No more Tesla cars shipped to Hawaii (Score:3)

    by MacMann ( 7518492 ) on Monday July 28, 2025 @05:38PM (#65551268)

    I'm a bit surprised this isn't making more news.
    https://www.hawaiipublicradio.... [hawaiipublicradio.org]

    Because of federal and state laws in place the shipping company Matson has an effective monopoly on cars brought to Hawaii. Electric cars have been growing in popularity in the state, as indicated in the article I linked to, but this should make people wonder how long that lasts if the one company that has been bringing EVs to the state decides they won't bring any more to the islands.

    If Elon Musk wants to protect his market for electric vehicles then maybe he needs to work out how they are to be shipped over the sea safely.

    • Re: (Score:2)

      by dgatwood ( 11270 )

      I'm a bit surprised this isn't making more news. https://www.hawaiipublicradio.... [hawaiipublicradio.org]

      Because of federal and state laws in place the shipping company Matson has an effective monopoly on cars brought to Hawaii. Electric cars have been growing in popularity in the state, as indicated in the article I linked to, but this should make people wonder how long that lasts if the one company that has been bringing EVs to the state decides they won't bring any more to the islands.

      If Elon Musk wants to protect his market for electric vehicles then maybe he needs to work out how they are to be shipped over the sea safely.

      Just make sure they're sealed adequately and drive them across the ocean. After all, Elon Musk says that a Tesla will float (for a while). :-)

      Alternatively, the Boring Company could build a tunnel under the Pacific ocean from the Bay Area and just drive them over there. At one mile per week, they'll be done in only about 47 years. :-)

  • reading between the line... sounds like Musk is going to move into advanced chip manufacturing in the future.

    Usually when a company wants to be this closely integrated, it's not for "efficiency"... but to learn and start doing their own manufacturing down the line

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