Tesla has just signed a $16.5 billion contract with Samsung to make their next generation of AI chips.

And I think that there's actually a bigger strategy here that is going to apply to a lot of different

companies. I think the reason why they're making these chips is also going to be fascinating.

So I want to dive into not just the deal, but why the deal is being made and what this means for the overall industry. Obviously, $16 billion is a lot of money, but we know that a lot of money gets thrown around in the chip space, especially when you're making things for AI. So we're going to get into all of that on the podcast today. But before we did, I wanted to mention if you've ever wanted to try all of the different AI models I talk about on the podcast, I'd love for you to go check out my platform, which is called AIbox.AI. Basically, we allow you to compare all the top models side by side with each other, all on one platform. So you get one subscription, you get 40 different models. You get a bunch of image models. I recently, if you're seeing my screen share,

asked it for a LinkedIn influencer traveling to Japan with fans. But I got it to generate the image

with Flex 1.1 flow, with ideogram, with ChatGPT Image 1, and with Flex 1 Chanel. Anyways,

all the different models come up with different images and different image qualities and

concepts for a prompt. And so I love the ability to be able to try one prompt and get it from

a whole bunch of different AI models. You can also do this with text. You can also do this with

audio. So we have a ton of different models. You can compare them all side by side, figure out what

model basically does what you need to best. And you can chat with them all in the same conversation. So you can generate your images and then immediately below that switch to chat, GBT, and ask us some questions for a LinkedIn post and then switch to Cloud to come up with a better tone, all in the same thread without having to get subscriptions to every platform. So if you want to check it out, there's a link in the description to AIbox.a. But let's get into

what's going on with Tesla. And the first thing I'll do is share the tweet that Elon Musk recently

made. He said, Samsung's giant new Texas fab will be dedicated to making Tesla's next generation

A16 chip. The strategic importance of this is hard to overstate. Samsung currently makes

AI4. So basically, this is the to overstate. Samsung currently makes AI4. So

basically, this is the chip that goes inside the Tesla to help it self-driving. Samsung was making

their AI4 chip, but for their AI-5 chip, they actually went to Taiwan's semiconductor company.

And then for their AI-6 chip, they went back to Samsung. Now, what's going on here? This is a good

strategy. I guess one other thing that I'll bring up here is I think Elon's trying to do like the, you know, tariffs and other reasons trying to get a lot of stuff made inside of America. So that could be an element to this. But basically he said, TSM will make the AI5, which just finished design initiated in Taiwan and then in Arizona.

So TSM's building a ton of fabs in Arizona.

I used to live kind of in that area.

And honestly, it's pretty insane what they're doing down there.

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