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"Tesla Kills Dojo for $16.5B Samsung Chips": Musk Bets on AI5 and ...

11 Aug, 2025
"Tesla Kills Dojo for $16.5B Samsung Chips": Musk Bets on AI5 and ...

Tesla has reportedly acquired a large chip fabrication plant from SK Hynix, a major South Korean memory chip manufacturer, for a staggering $16.5 billion. This move signals Tesla's ambitious push to become more self-reliant in its technology supply chain, particularly for advanced chips needed for its future electric vehicles and robotics. The acquisition is significant as it allows Tesla to gain direct control over the production of powerful processors crucial for artificial intelligence (AI) and autonomous driving capabilities.

Elon Musk, Tesla's CEO, is heavily investing in AI, specifically AI5 and AI6, to enhance the performance of Tesla's self-driving technology and develop its humanoid robot, Optimus. The new chip facility will be pivotal in powering these advancements, enabling more sophisticated and reliable AI processing. This acquisition is a key step in Tesla’s strategy to reduce dependence on external chip suppliers and accelerate the development of its innovative products, including the next generation of electric cars and robots. The move positions Tesla to be a leader in the burgeoning field of AI-powered robotics and autonomous systems.