Tesla has signed a $16.5 billion contract with Samsung for the supply and production of next-generation AI chips, marking a strategic partnership between the two companies. Elon Musk confirmed that Samsung will manufacture Tesla's AI6 chips and emphasized the importance of the deal, describing it as a starting point with expectations for higher output. The agreement also includes Tesla's involvement in efforts to enhance manufacturing efficiency at Samsung's facilities. Musk held a video call with Samsung's chairman and senior leadership to discuss the partnership, highlighting collaboration to leverage both companies' strengths. Samsung, which has previously supplied Tesla's AI3 and AI4 chips but faced challenges with smaller process nodes, is expected to ramp up production capacity under this deal. The contract has positively impacted Samsung's stock, which surged by 7%, while competitors like TSMC saw declines. Industry analysts note that despite the contract's size, it may not be sufficient to fully revive Samsung's chipmaking business. The partnership also allows Musk to gain valuable insights from Samsung's production lines, potentially benefiting Tesla's future chip designs and negotiations.