Samsung just locked in a massive deal with Tesla that is making Texas ground-zero for the next generation of AI chips.

Samsung has renewed its AI chip partnership with Tesla in a massive $16.5 billion deal. Tesla CEO Elon Musk confirmed the collaboration himself on X, adding:

"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.”

Musk also noted that Tesla won’t just be the customer; they’ll be in the trenches helping Samsung optimize the production process at the Texas fab. He even said he’ll be walking the fabrication line himself, which will be near his own home. It's a major deal, but if $16.5 billion sounds big, Musk says that’s just the minimum.

Texas is slowly becoming the hub for AI..

This deal is a major win for Texas’s growing reputation as a national AI and automation hub. Samsung originally questioned the plant's placement in Texas. Sources say the company struggled to find enough clients to justify its opening. But now, it’s got one of the world’s most ambitious companies signed on for nearly a decade.


Read More: Driverless Uber Rides Have Officially Entered Texas


 

This only makes things easier for Tesla, whose headquarters are down the road in Austin. Tesla's got major AI-related projects, including the next phase of its robotaxi program, which just launched in Austin last month with safety drivers onboard.

Speaking of Robots in Texas…

If this feels familiar, that’s because Texas has been quietly infusing robots throughout the state. From Tesla’s autonomous vehicles to the smaller-scale delivery bots already rolling through neighborhoods, AI-powered machines are officially part of everyday life in the Lone Star State.


Read More: Why Are Robots Quietly Taking Over Texas Sidewalks?


 

As I covered recently, sidewalk delivery robots have started showing up in cities like Dallas, Houston, and Austin, and it’s only a matter of time before they hit smaller towns like Victoria or Corpus Christi. These cooler-sized bots use smart sensors and GPS to deliver tacos, toilet paper, and more, all without a driver.

They’re not toys, they’re not lost, and no, they’re just cruising along the sidewalk, doing their job.

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