Samsung Wins $16.5 Billion Deal to Produce Tesla's Advanced AI Chips
It looks like Samsung just landed a huge win! The tech giant has secured a $16.5 billion deal with Tesla to manufacture its next-generation AI chips, known as A16. This is a pretty big deal, especially considering that TSMC, another major player in the chip manufacturing world, had previously snagged the contract for Tesla's A15 chips.
If you're wondering about the timeline, the deal is set to run through 2033 and will leverage Samsung's upcoming plant in Taylor, Texas. This is interesting because there were reports that the opening of the Texas factory was delayed due to a lack of customers. But it seems like Tesla has stepped in to fill that gap.
Elon Musk himself confirmed the partnership on X, highlighting the strategic importance of Samsung's new Texas fab being dedicated to producing Tesla's AI chips. He even mentioned that he intends to personally oversee the manufacturing process to ensure maximum efficiency. "Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency," Musk stated. "This is a critical point, as I will walk the line personally to accelerate the pace of progress."
While Samsung currently makes the A14 chips used in Tesla's Full Self-Driving platform, it lost out on the A15 contract to TSMC. Musk mentioned that the design for the A15 has just been completed. This new deal signifies a significant comeback for Samsung. It's great to see them back in the game, especially with such a high-profile client like Tesla.
Source: Engadget