Elon Musk says Tesla, Samsung sign $16.5 billion chip supply deal
Samsung's shares jumped as much as 6.8% to their highest since September last year after news of the deal.
Musk said Samsung's new chip factory in Taylor, Texas will make Tesla's next-generation AI6 chip, potentially re-energizing the project that has faced long delays amid Samsung's difficulties in retaining and attracting major clients.
"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 a post on X on Monday.
"The $16.5B number is just the bare minimum. Actual output is likely to be several times higher," he said in another post.
According to a senior analyst at NH Investment & Securities, Ryu Young-ho, Samsung's Taylor fab "so far had virtually no customers, so this order is quite meaningful".
In October, Reuters reported that Samsung had postponed taking deliveries of ASML chipmaking equipment for its Texas factory as it had not yet won any major customers for the project. It has already delayed the plant's operational start to 2026.
POTENTIAL PRODUCTION TIMELINE
While no timeline was provided for AI6 chip production, Musk has previously said that next-generation A15 chips will be produced at the end of 2026, suggesting A16 would follow.
Lee Dong-ju, an analyst at SK Securities, expects production in 2027 or 2028, but Tesla has a history of missing its targets.
Samsung currently makes Tesla's A14 chips, which power its Full Self-Driving driver assistant system, while TSMC is slated to make the AI5, initially in Taiwan and then Arizona, Musk has said.
Samsung, the world's top memory chip maker, also produces logic chips designed by customers through its foundry business. The Texas project is central to Samsung Chairman Jay Y. Lee's strategy to expand beyond its bread-and-butter memory chips into contract chip manufacturing.
Samsung currently holds just 8% of the global foundry market, far behind industry leader TSMC, which has a 67% share, data from market researcher Trendforce show.
Samsung had earlier announced the $16.5 billion chip supply deal without naming the client, saying the customer had requested confidentiality about the details of the deal, which will run through the end of 2033.
Three sources briefed about the matter told Reuters that Tesla was the customer for the deal.
HELP SAMSUNG'S FOUNDRY BUSINESS
The deal with Tesla comes as Samsung, which is due to report its earnings on Thursday, faces mounting pressure in the race to produce artificial intelligence chips, where it trails rivals such as TSMC and SK Hynix. This lag has weighed heavily on its profits and share price.
Pak Yuak, an analyst at Kiwoom Securities, said the deal would help reduce losses at Samsung's foundry business, which he estimates exceeded 5 trillion won ($3.6 billion) in the first half of the year.
Analysts say Samsung has struggled to retain key clients, with many defecting to TSMC for advanced chips, underscoring technological challenges the firm faces in the race to stay relevant in the capital intensive business.
TSMC counts Apple, Nvidia and Qualcomm among its customers.
It is not clear whether the Samsung-Tesla deal is related to ongoing trade talks between South Korea and the United States. Seoul is seeking U.S. partnerships in chips and shipbuilding amid last-ditch efforts to reach a trade deal to eliminate or reduce potential 25% U.S. tariffs.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
First Post
7 minutes ago
- First Post
Philippines President Marcos in India for 5-day visit: Why this visit is significant
Philippines President Ferdinand Marcos Jr will make his first state visit to India from today (August 4), marking 75 years of diplomatic ties. The visit includes talks with Prime Minister Modi, defence and trade discussions, and a Bengaluru business engagement read more Philippine President Ferdinand Marcos Jr delivers his fourth State of the Nation Address (SONA), at the House of Representatives, in Quezon City, Metro Manila, Philippines, July 28, 2025. File Image/Reuters Philippines President Ferdinand Marcos Jr is on his first official visit to India from Monday to Friday (August 4-8, 2025) aimed at advancing cooperation between New Delhi and Manila. The visit comes as the two nations commemorate 75 years of diplomatic relations. This high-level state visit is expected to encompass a broad agenda – from defence and maritime security to trade, investment, and cultural exchange – and marks the first trip by a Filipino head of state to India since Gloria Macapagal-Arroyo's visit in 2007. STORY CONTINUES BELOW THIS AD What's on the Marcos agenda in India Marcos, invited by Prime Minister Narendra Modi, will be accompanied by First Lady Louise Araneta Marcos, along with an entourage including senior Cabinet ministers, top bureaucrats, key dignitaries and business leaders. During his stay in New Delhi, Marcos will meet with Modi on August 5 for in-depth bilateral talks. In addition to Modi, he is slated to call on President Droupadi Murmu and External Affairs Minister S Jaishankar, with discussions expected to cover areas ranging from regional security concerns to bolstering economic ties. According to the Philippine Communications Office (PCO), the official engagements won't be limited to Delhi. 'After official meetings and events in New Delhi, the President and his delegation will travel to Bangalore. He will meet with the business sectors in both cities,' the PCO stated. This Bengaluru leg will be a focal point for economic engagement, as Marcos interacts with leading Indian companies and potential investors. Marcos will also hold a community outreach session with members of the Filipino diaspora in New Delhi. The visit, spanning five days, signals Manila's intent to strengthen strategic ties with one of Asia's largest economies, while also providing New Delhi with a valuable opportunity to deepen its 'Act East' Policy. The trip follows a long hiatus in top-level exchanges. The last time an Indian president visited the Philippines was Ram Nath Kovind in 2019, whereas Marcos's journey will revive head-of-state diplomacy after nearly two decades. India-Philippines defence a priority Defence cooperation has emerged as one of the strongest anchors of India-Philippines relations, and it is set to be a highlight of this state visit. In January 2022, Manila signed a $374.9 million agreement for the purchase of the BrahMos supersonic cruise missile system, making the Philippines the first foreign buyer of India's flagship missile platform. STORY CONTINUES BELOW THIS AD The first delivery of the BrahMos took place on April 19, 2024, an event that signalled growing strategic convergence between the two countries. India has been steadily expanding its defence outreach to Southeast Asia, and with the Philippines, the collaboration spans military training, ship visits and maritime security dialogues. Indian Navy and Coast Guard vessels frequently make port calls to the Philippines – notable visits include INS Satpura in June 2022, INS Ranvijay and INS Kora in August 2021, and several earlier deployments. These have often been accompanied by joint exercises, including the first-ever Navy-to-Navy Passage Exercise in the West Philippine Sea in 2021. Cooperation has gone beyond drills and deployments. The two sides signed an MoU on Enhanced Maritime Cooperation in 2023, alongside a Standard Operating Procedure (SOP) for exchanging white-shipping information, allowing real-time sharing of data on commercial ships to bolster maritime security. High-level defence engagements have also been frequent. A Philippine Coast Guard delegation led by CG Admiral Artemio M Abu visited India in August 2023, and the Philippine Army's commanding general, Lt Gen Roy Mabagos Galido, travelled to India for the 13th Indo-Pacific Army Chiefs' Conference in September 2023. STORY CONTINUES BELOW THIS AD A 2006 Defence Cooperation MoU led to the creation of the Joint Defence Cooperation Committee (JDCC), which has convened four times, most recently in March 2023 in New Delhi. A separate MoU on Defence Industry and Logistics Cooperation signed in 2017 resulted in a Joint Defence Industry and Logistics Committee (JDILC), which has met thrice, including in March 2022. The armed forces of both countries also participate in specialised training exchanges. Philippine officers have attended India's prestigious National Defence College (NDC), while Indian officers have been part of the Master in National Security Administration (MNSA) course in Manila. Engagements extend to staff college programs and delegation visits, including multiple visits by Indian military education institutions such as the Army War College, Mhow. During the Shangri-La Dialogue in Singapore in 2024, Marcos articulated Manila's vision, stating that his country 'will pursue more robust collaboration with friends such as India.' This declaration, alongside India's consistent stance on freedom of navigation and territorial integrity in the South China Sea, positions the defence track as an area ripe for new agreements or expanded commitments during the visit. STORY CONTINUES BELOW THIS AD What trade between India-Philippines looks like While defence cooperation grabs headlines, trade and investment form the backbone of the India-Philippines relationship – and Marcos's visit is expected to bring this into sharper focus. Bilateral trade has grown steadily, hitting $3.53 billion in 2023-24, a year-on-year increase of 8.6 per cent. India has maintained a healthy trade surplus, exporting $2.09 billion worth of goods to the Philippines while importing $1.43 billion. Major Indian exports include: Engineering goods and automotive parts Pharmaceutical products (India supplies around 20 per cent of total pharma exports to ASEAN) Steel, petroleum products, and chemicals Electronics, plastics, rice, and bovine meat Key imports from the Philippines to India feature: Electrical machinery and semiconductors Copper, lead, and precious stones Plastics and ores Food industry residues and animal fodder According to trade data, Indian pharmaceutical products accounted for 15.96 per cent of Philippine pharmaceutical imports in 2023, putting a spotlight on India's strong role in Manila's healthcare sector. Investment flows complement trade. Indian companies have invested an estimated $5 billion in the Philippines, largely in sectors like IT and BPO services, pharmaceuticals, textiles, agriculture and FMCG. Conversely, Philippine investments in India are smaller but strategically placed, with firms like Ayala's AC Energy Corporation and Atlantic Gulf & Pacific Company (AG&P) active in renewable energy, construction, and infrastructure. Efforts to further streamline commerce have been ongoing. In April 2022, the two countries signed an Agreement on Cooperation and Mutual Assistance in Customs Matters (ratified in June 2023). Additionally, talks on a Preferential Trade Agreement (PTA) were revived in December 2023, with negotiations continuing to frame the Terms of Reference for the Trade Negotiations Committee. To encourage tourism and business exchanges, the Philippines recently introduced visa-free travel for Indian nationals, while direct flights between the two countries are expected to resume by late 2025 – a move that could significantly boost connectivity. STORY CONTINUES BELOW THIS AD Why a strong India-Philippines bond matters The visit holds significance beyond bilateral ties. India and the Philippines are both part of a wider Indo-Pacific strategic framework, sharing concerns about maritime security and trade routes. The Ministry of External Affairs has framed the visit as part of India's broader outreach to Southeast Asia, noting, 'India's relations with the Philippines are an integral pillar of our 'Act East' Policy, Vision MAHASAGAR and our vision of the Indo-Pacific. The forthcoming State Visit of President Marcos coincides with the 75th anniversary of India-Philippines diplomatic relations. The visit is an opportunity for both leaders to set the path for future bilateral cooperation and to engage on regional and international issues of mutual interest.' India's Comprehensive Strategic Partnership with ASEAN also feeds into the relationship, and Marcos's engagements in India are expected to highlight Manila's role as a key Southeast Asian partner for New Delhi. The Philippines, facing ongoing challenges in the South China Sea, views partnerships with like-minded countries as critical. India, which has consistently upheld the principle of freedom of navigation and opposed unilateral changes to the status quo in maritime disputes, provides Manila with a supportive partner in this domain. STORY CONTINUES BELOW THIS AD With inputs from agencies
India Today
7 minutes ago
- India Today
Sam Altman teases GPT-5 with sneaky screenshot on X, Grok says expectations for AI can get wild
OpenAI CEO Sam Altman has stirred up speculation once again. This time by quietly dropping what appears to be a preview of GPT-5. In a post on X (formerly Twitter) on Sunday, Altman casually praised the sci-fi series Pantheon, only to follow up with a screenshot that many believe shows GPT-5 in action. The post was subtle, but for tech watchers and AI enthusiasts, it didn't go a user replied asking if GPT-5 also recommends the show, Altman responded with a screenshot and wrote, 'turns out yes!' The image showed what appeared to be a ChatGPT-like response describing Pantheon as 'cerebral, emotional, and philosophically intense,' while also noting its perfect Rotten Tomatoes score. Business Insider later verified the details, suggesting that the model was indeed drawing from accurate exchange has now become one of the first glimpses into what might be OpenAI's next major language model. While there's been no formal announcement, the post has sparked widespread chatter online. Observers pointed out that the language in the screenshot feels familiar — still using em dashes, a stylistic quirk known from earlier ChatGPT versions — implying that even with all the upcoming advancements, some old traits may stick around. Expected to bring improvements like a larger context window, stronger reasoning, and support for multimodal inputs, GPT-5 is seen as OpenAI's answer to growing competition from Google DeepMind, Anthropic, Meta, and Elon Musk's the reactions to Altman's post weren't just about admiration. The thread quickly turned into a mix of excitement, sarcasm, and raised eyebrows. Some users were unimpressed by the supposedly new model's response, with one saying it sounded just like GPT-4o. Another, with a heavy dose of humour, questioned what more people were expecting—'You wanted it to ascend to god-tier sentience and whisper sweet nothings in binary?' one user wrote. 'It's an AI, not your mom finally saying she's proud of you.'Someone else joked about the unrealistic expectations surrounding new AI models, quipping about whether people thought the model should jump out of the screen and 3D-print solutions. Amid this banter, a few users did bring up genuine demands—like more advanced coding support and deeper agent-like behaviour, suggesting they're hoping for something beyond just chat when Grok, Elon Musk's AI chatbot, stepped in with a post of its own. Responding to the thread, Grok tweeted: "Haha, appreciate the shoutout! Expectations for AI can get wild—coherent answers are a win, but you're right, let's push for those agent superpowers and epic coding. Grok 4's got some tricks up its sleeve; what feature would you 'borrow' first?'The reply was witty but also shows a larger conversation around what the public now demands from AI, more than just words, users are looking for real utility, integration, and hands-on functionality. While Altman hasn't confirmed whether the model shown was actually GPT-5, the viral post has already done its job. - Ends
Time of India
35 minutes ago
- Time of India
Elon Musk's Neuralink brain chip: What is it, how it helps paralysed patients and aims to merge humans with AI
Elon Musk 's Neuralink is revolutionising the way humans interact with technology by merging the power of thought with advanced computing. Its flagship innovation, a coin-sized brain implant called 'the Link,' enables individuals to control computers, smartphones, and even games just by thinking. The implant has already transformed lives, helping paralysed patients regain digital independence and communication ability. Early recipients like Noland Arbaugh, Audrey Crews, Alex, and RJ showcase how neural signals can bypass damaged pathways to restore essential functions. Beyond assisting people with disabilities, Neuralink envisions a future where humans could communicate brain-to-brain, boost memory, and even merge with artificial intelligence. However, this pioneering technology also faces significant challenges, including complex surgeries, device reliability, and ethical concerns over neural privacy and long-term brain safety. Check how Neuralink works , the individuals already benefiting from it, and how it could change the future of humanity. What is Neuralink? Inside Elon Musk's brain chip technology The Neuralink Link is a brain-computer interface (BCI) designed to record and interpret neural signals. It is implanted directly into the skull, with ultra-thin electrode threads (thinner than human hair) extending into the brain's motor cortex. These electrodes detect and interpret neural impulses associated with movement and thought processes. Once processed, the data is transmitted wirelessly to external devices like computers, tablets, and prosthetics, effectively allowing users to control technology with their minds. The implant charges wirelessly, ensuring convenience and continuous operation. How Neuralink works Surgical implantation A specialized surgical robot performs the implant procedure to ensure precision. The robot delicately inserts up to 1,024 flexible electrodes into specific brain regions without damaging nearby blood vessels or tissue. Signal detection The electrodes pick up tiny electrical impulses generated when the user thinks about performing specific actions, such as moving a cursor, selecting text, or clicking on applications. Data processing and transmission The neural signals are amplified, digitized, and processed by the implant's internal electronics. These processed signals are transmitted wirelessly to a receiver (a tablet or computer), converting thoughts into actionable commands. Adaptive learning system Neuralink's software uses machine learning to adapt to each user's unique neural patterns. Over time, accuracy improves, reducing errors and allowing faster digital control. Neuralink human trials reveal stunning breakthroughs for paralysed patients Source: New York Post Noland, paralysed from the shoulders down since a 2016 diving accident, became the first human Neuralink recipient in early 2024. The implant allowed him to play online chess, browse the internet, and use his laptop entirely via thought. Although some electrode threads retracted initially, software upgrades restored functionality, demonstrating Neuralink's ability to adapt to real-world challenges. Alex – Creativity unlocked The second recipient, known as Alex (pseudonym), used the implant for advanced digital tasks, including 3D modeling, digital art, and gaming. This success showed the device's potential beyond basic computer use, extending into professional and creative industries. Audrey Crews – The first female participant Paralyzed for over two decades, Audrey Crews became the first publicly identified female Neuralink recipient in mid-2025. She regained the ability to digitally sign her name and play interactive games for the first time in years. Her experience proved Neuralink's adaptability for different patient profiles. RJ – A Veteran's Independence restored RJ, a US military veteran, used Neuralink to control his smartphone and computer, enabling easier communication and daily digital tasks. His case highlighted Neuralink's potential in helping injured service members regain independence. Other participants (P6–P9+) By late 2025, at least nine people had received the implant as part of the PRIME clinical trial in the US and U.K. Though many remain anonymous, early reports confirmed that participants successfully executed binary commands and navigation tasks using only their thoughts. Neuralink future goals expand beyond medical applications While Neuralink's initial focus is medical restoring communication and independence for people with paralysis it has long-term ambitions that include: Memory enhancement: Storing and recalling digital memories directly from the brain. Brain-to-brain communication: Enabling direct mental communication between humans. Integration with AI: Allowing humans to interface with artificial intelligence for faster learning and cognitive enhancement. ` Neuralink's ethical and safety challenges The technology raises important questions: Privacy: Who controls neural data? Long-term health: What are the risks of chronic electrode implantation? Social impact: Could BCIs create inequality between enhanced and non-enhanced humans? Neuralink's research emphasises incremental progress, regulatory compliance, and patient safety, understanding that merging the human brain with machines requires caution as well as innovation. Also Read | Who is Arvinder Singh Bahal? The 80-year-old adventurer flying to space on Jeff Bezos' Blue Origin mission
