Mentioned:
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Tesla is pouring billions of dollars into new leading edge chips. And they’re partnering up with Samsung to do it.

What’s happening:

  • Tesla (NASDAQ: TSLA) has struck a new deal with Samsung in which Samsung will manufacture $16.5B USD of new artificial intelligence chips

Why it matters:

  • Tesla has publicly stated the new chips will be used for both autonomous vehicles and to begin commercial production of their humanoid robot known as Optimus

Going deeper:

  • Samsung will manufacture their leading edge A16 chips at their new American facility located in Taylor, Texas
  • Tesla will also leverage the A16 chips from Samsung for their rapidly growing data centre operations, which are focused both on training artificial intelligence models for self driving vehicles as well as applications in robotics and energy

The intrigue: