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Tesla has signed a $16.5 billion deal to acquire Samsung’s next-generation chips, primarily from the company’s Taylor, Texas, facility. 

“Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip,” Elon Musk posted on X. “The strategic importance of this is hard to overstate.”

AI6 chips, the latest iteration of the custom silicon, will power Tesla’s self-drive vehicles, robots, and AI infrastructure.