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Samsung wins $16.5 billion deal to make Tesla's A16 chips


It will use a Texas-based factory that had struggled to get any customers.

The chip manufacturer had filed a regulatory contract with an unnamed entity, but Elon Musk announced Tesla as the other party on X (formerly Twitter). Musk stated, "Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip. This agreement marks a significant turnaround for Samsung, which, earlier this month, pushed back opening the Texas factory until 2026 due to a lack of customers.

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