Elon Musk's Tesla has signed a deal worth $16.5 billion deal to get its next-generation AI chips from Samsung. 

“Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip,” said Musk in an X post on Sunday.

Musk has said that the AI6 chip will be used to power his self driving vehicles and Optimus humanoid robots.

"Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house," Musk said in another post on X on Monday.

"The $16.5B number is just the bare minimum. Actual output is likely to be several times higher," Musk said in another post.

The deal is expected to give a boost to Samsung as its chip making project has faced delays. 

Last year, the Reuters had reported that Samsung had postponed taking deliveries of ASML chipmaking equipment for its Texas factory as it was yet to win any major customers for the project.

Meanwhile, Tesla is working with TSMC to make AI5 chips, which just finished the design. The AI5, a generation that is primarily built for Full Self-Driving (FSD), will initially be made in TSMC’s Taiwan factory and then at its Arizona facility.