Tesla signs $16.5B deal with Samsung to make AI chips

Tesla has signed a $16.5 billion deal with Samsung Electronics to produce advanced artificial intelligence (AI) chips for the electric vehicle company. This partnership is a significant boost for Samsung, as it secures a major contract with a high-profile tech giant. The new AI chips will be used in Tesla's upcoming models, supporting the company's autonomous driving capabilities and other advanced technologies. The deal is expected to last several years, providing a steady revenue stream for Samsung's semiconductor business. The agreement highlights Tesla's ongoing efforts to develop its in-house chip design and manufacturing capabilities, reducing its reliance on third-party suppliers. The move also aligns with Tesla's broader strategy to control more of its supply chain and technology development. For Samsung, the deal represents an opportunity to showcase its expertise in semiconductor manufacturing and solidify its position as a leading provider of advanced chips for the automotive industry.