July 28 (UPI) -- Elon Musk announced Telsa signed a deal for $16.5 billion to obtain semiconductor chips from Samsung.
Musk on Sunday confirmed that Tesla had entered the deal with Samsung after the latter announced a supply agreement, but did not disclose the company it was working with.
On Saturday, Samsung announced a supply agreement, but it didn't name the company with which it was collaborating. Musk confirmed that it was Tesla on Sunday.
"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. Samsung currently makes AI4.TSMC will make AI5, which just finished design, initially in Taiwan and then Arizona," Musk said.
"Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress," Musk said on X.
