Seoul, July 29 -- Samsung Electronics has landed a record USD 16.5 billion deal to produce Tesla's next-generation AI chips, known as the AI6, reports Korea Herald.

Tesla CEO Elon Musk announced on X (formerly Twitter) that Samsung's chip plant in Taylor, Texas, will be dedicated to manufacturing the AI6 chips. This confirmation came shortly after Samsung revealed a major foundry contract with an undisclosed global client.

"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." He added that Samsung currently manufactures Tesla's AI4 chips, while TSMC will produce the AI5 chips in Taiwan and later in Arizona.

Samsung's regulatory filing also co...