Tesla CEO Elon Musk said the U.S. automaker had signed a $16.5 billion deal to source chips from Samsung Electronics, a move expected to bolster the South Korean tech giant’s loss-making contract manufacturing business.

Elon Musk recently engaged in a video conference with Samsung's chairman and senior leadership to explore the framework of a potential partnership. Musk's efforts indicate a significant move towards collaborating with tech giants,

Ultimately, experts said the deal does more for Samsung than Tesla. But the Austin metro is also considered a big winner.

Samsung secures a $16.5 billion deal to produce AI chips for Tesla, marking a major step in U.S.-based semiconductor manufacturing and autonomous tech innovation.

Elon Musk announces major deal with Samsung for Tesla's next-gen AI6 chip, signaling renewed focus on his companies and ambitious targets.