Tesla and Samsung ink $16.5B chips deal

Deal Overview - Tesla signs a major deal with Samsung to manufacture AI chips for Tesla cars [1] - The deal is worth $165 billion (1650 亿美元), equivalent to roughly 8% of Samsung's 2024 total revenues, and runs over the next eight years [2] - Elon Musk suggests the total amount is likely to be several times higher [2] - Samsung will manufacture Tesla's AI6 chips in their new fab in Taylor, Texas, which should be up and running in 2026, but some reports say 2029 [2] Strategic Implications for Tesla - This deal is part of Elon Musk's plan to restructure Tesla away from just selling electric vehicles and into selling AI and robot-based services like self-driving cars [3] - The chips will be used to power Tesla's self-driving technology, possibly humanoid robots, and even possibly data centers [3] Competitive Landscape - Samsung's chip business has lagged behind TSMC Taiwan Semiconductor, which still makes Tesla's current AI 5 chip [4] - The Tesla win could breathe some life into Samsung's two nanometer ambitions [5] - The deal raises the question of why Tesla didn't choose Intel as an alternative to TSMC [5] - TSMC made the chips before, now it's Samsung, suggesting Samsung may have offered steep discounts to secure the deal [6] Intel's Position - Intel seems to be backing away from the foundry business [7] - Intel is willing to essentially be gone with its most advanced manufacturing processes and possibly be gone with the foundry business [9] - Intel talked about having an external customer a few quarters ago, but then there was no further news, possibly due to yield issues [10]