Samsung Electronics has announced the completion of a massive deal with Tesla worth $16.5 billion, to manufacture custom chips based on artificial intelligence, bringing growth back to the Korean company's chip manufacturing sector.

The deal is for 8 years and was revealed in a statement issued by Samsung and confirmed by Tesla CEO Elon Musk. This is the largest agreement of its kind that Samsung has completed with a single entity.Musk said on his official account on the X platform that Samsung's new factory in the US state of Texas will produce the next-generation Tesla AI6 chip, as part of investments of about $40 billion with the support of the Chips and Science Act launched by the administration of former US President Joe Biden.