Tesla and Samsung sign a $16.5 billion deal for AI chip production in Taylor, Texas, set to strengthen the local economy and semiconductor industry.

In a regulatory filing in South Korea, Samsung announced it has secured a $16.5 billion multi-year deal to make chips for a “big global company.”

Musk noted Tesla is working with TSMC to make AI5 chips, which just finished the design. The AI5, a generation that is primarily built for FSD, will initially be made in TSMC’s Taiwan factory and then at its Arizona facility. Samsung already makes the AI4 chip, according to Musk.