Musk hails $16.5bn Samsung deal to supply Tesla with AI chips
The South Korean tech company announced the contract with an unnamed client in a regulatory filing, with Tesla's chief executive giving further details on his social media platform, X.
Musk wrote that Samsung would produce Tesla's next-generation A16 chips at a new plant in Texas.
'The strategic importance of this is hard to overstate,' he wrote.
In December, the Biden administration announced $4.75bn in funding for Samsung's semiconductor manufacturing facilities in Texas under the Chips Act, legislation aimed at making the US more self-sufficient in chip manufacturing. At the time, the then US commerce secretary, Gina Raimondo, said the funding would ensure the country had a 'steady stream' of chips essential to AI and national security.
In a post of X on Monday, Musk said Samsung had agree to allow Tesla to 'assist in maximising manufacturing efficiency' and that he would 'walk the [manufacturing] line personally to accelerate the pace of progress'.
He added that the Samsung plant in Taylor, outside Austin, Texas, was 'conveniently located not far from my house'.
The deal will help re-energise a project faced long delays amid Samsung's difficulties in retaining and attracting big clients. Ryu Young-ho, a senior analyst at Seoul-based NH Investment & Securities, said the Taylor plant 'so far had virtually no customers', making the deal 'quite meaningful'.
In October, Reuters reported that Samsung had postponed taking deliveries of chipmaking equipment from ASML, a Dutch manufacturer, for the Texas site as it had not yet won any significant customers for the project. It has already delayed the plant's operational start to 2026.
Samsung makes Tesla's AI4 chips, which power the carmaker's full self-driving driver assistant system. Taiwan's TSMC is slated to make the AI5 chips for Tesla, initially in Taiwan and then Arizona, Musk has said.
Sign up to Business Today
Get set for the working day – we'll point you to all the business news and analysis you need every morning
after newsletter promotion
The regulatory filing by Samsung announcing the chip supply agreement did not name the client, saying the customer had requested confidentiality about the details of the deal, which will run through the end of 2033.
Samsung has been approached for comment.
Reuters contributed to this article.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
4 minutes ago
- Reuters
Chase Briscoe wins sixth NASCAR Cup pole of 2025 season at Iowa Speedway
August 2 - NEWTON, Iowa -- Big track, road course or short track -- Chase Briscoe has shown blistering speed in his first season in the No. 19 Joe Gibbs Racing Toyota on all sorts of venues. On Saturday at Iowa Speedway, a 0.875-mile short track, Briscoe won his sixth pole of the season with a lap at 136.933 mph (23.004 seconds) to earn the top starting spot in Sunday's Iowa Corn 350 Powered by Ethanol (3:30 p.m. ET on USA, MRN and SiriusXM NASCAR Radio). That effort followed a pole run last Saturday at mammoth 2.5-mile Indianapolis Motor Speedway. In fact, in the last 11 NASCAR Cup Series qualifying sessions, Briscoe has put his car on the front row seven times with five Busch Light Pole Awards and a pair of second-place starts. Briscoe, who has eight career poles, attributed his qualifying success to a burgeoning working relationship with crew chief James Small. "I just feel that James and the engineers on the No.19 crew have done a really, really good job, especially these last two months, of understanding what I want and what I need out of the race car," Briscoe said. "I've even kind of noticed a switch with James over the course of the last two or three weeks even, where it went from 'We've got to be doing this different' to 'We've got to get the car better for you now.' "I think that came as they started to understand me more, and our performance has been better. James does such a great job of understanding what I need, especially on Saturdays for qualifying." Briscoe edged William Byron (136.435 mph) for the top starting spot by 0.084 seconds. Kyle Larson, Byron's Hendrick Motorsport teammate, was third fastest at 136.429 mph. Byron, Larson and teammate Chase Elliott, who qualified eighth, are locked in a tight battle for the Cup Series Regular Season Championship, with Elliott leading the series by four points over Byron and 15 over third-place Larson. Austin Cindric (136.258 mph) qualified fourth in the fastest Ford, followed by Brad Keselowski and defending race winner Ryan Blaney. Carson Hocevar, Elliott, AJ Allmendinger and Justin Haley secured positions seven through 10 on the grid. Roush Fenway Keselowski Racing teammates Chris Buescher and Ryan Preece will start 27th and 33rd, respectively, as they battle for berth in the Cup Playoffs. Preece trails Buescher by 42 points in the race for what is currently the final spot. Briscoe's Camry was the only Toyota in the top 10. Denny Hamlin, who scraped the Turn 1 wall during practice, was 11th fastest in the No. 11 JGR Toyota. Kyle Busch crashed in Turn 1 on his 18th practice lap and damaged his No. 8 Richard Childress Racing Chevrolet beyond repair. He'll start from the rear of the field in a backup car on Sunday. --Reid Spencer, special to Field Level Media
Daily Mail
34 minutes ago
- Daily Mail
FLOURISHING AFTER 50: I've found love again - but now my kids are worried they'll lose their inheritance
Dear Vanessa, I never thought I'd be writing to you, but here I am at 56, divorced for 10 years, and finally with a man who makes me feel alive again. We met on a hiking trip, and it's been wonderful – until we started talking about moving in together. He wants us to sell our homes and buy something new. I have more equity, so naturally, I'd be putting in more. My kids are worried I'll lose their inheritance if things don't work out. He thinks I'm overthinking it and that love means trusting each other. After everything I've been through, I just want to protect myself and my future. But I don't want money fears to ruin what could be the best chapter of my life. How do couples in their 50s blend finances without breaking their relationship? Wishing for guidance, Linda. Linda, congratulations on finding love again. Many people in their 50s believe that part of their life is over, so it's wonderful you've found happiness. You're also wise to pause and think before making big financial moves. Love is about trust, but later-in-life relationships often come with complex money matters that need clear agreements. When you've spent decades building your assets and raising children, combining finances isn't as simple as when you were younger. A co-habitation or prenuptial agreement can outline exactly what would happen if you separated. Far from being unromantic, it creates confidence that both of you will be treated fairly, allowing you to enjoy the relationship without financial anxiety hanging over you. If you decide to buy a home together, you don't need to split ownership 50/50. Many couples use arrangements where each person owns a percentage of the property that matches what they've contributed. This also allows you to leave your share to your children rather than it automatically passing to your partner if something happens to you. It's one of the most effective ways to protect family inheritance while still buying together. At 56, your pension and retirement savings are key to your long-term security. Putting too much of your equity into a shared home may leave you with less flexibility later to invest, increase your pension contributions, or cover healthcare needs. While your main home usually isn't counted in means-tested benefits, locking up most of your wealth in property can limit your options if life changes. Keeping some money separate can help you maintain independence and peace of mind well into your 70s and beyond. Money can be an uncomfortable topic, especially after divorce, but having open and calm conversations now is crucial. A financial adviser who understands blended families can model different scenarios for you – whether you keep separate homes, buy together equally, or use different ownership shares – so you can see exactly what's at stake. If you don't have an adviser, you can use my free service to find one who's right for you here. With professional advice and the right agreements in place, you can protect your children's inheritance, safeguard your retirement, and still build a secure and happy future with your new partner. Wishing you happiness and peace of mind,
Daily Mail
34 minutes ago
- Daily Mail
Snooty Nantucket residents outraged over new chain store opened on ritzy billionaire's island
Snooty Nantucket residents furious over the arrival of a chain store on their ritzy island are demanding its closure. Roller Rabbit, a pricey, high-end sleepwear brand with a dozen locations nationwide, opened its latest shop earlier this year, right in the heart of Nantucket's upscale downtown, according to Nantucket Current. But its arrival has sparked a ferocious backlash, as it directly violates the island's fiercely defended ban on franchises in the downtown area. Despite being ordered to 'immediately cease all business activity' on the affluent Massachusetts island, the boutique defiantly kept its doors open - making subtle changes in a bid to dodge the ban. The ban - officially called the Formula Business Restriction - is a town bylaw designed to preserve Nantucket's historic charm and shield local businesses from being drowned out by national and international retail chains. 'The proliferation of formula businesses will have a negative impact on the island's economy, historical relevance and unique character and economic vitality,' Nantucket Book Partners owner Wendy Hudson told the outlet. 'These uses are therefore prohibited in order to maintain a unique retail and dining experience. 'Formula businesses frustrate this goal by detracting from the overall historic island experience and threatening its tourist economy.' The ban - officially called the Formula Business Restriction - is a town bylaw designed to preserve Nantucket's historic downtown charm and shield local businesses from being drowned out by national and international retail chains Ritzy residents overwhelmingly supported the ban nearly a decade ago, worried that recognizable stores would erode the island's independent vibe and turn it into a cookie-cutter shopping destination. Building Commissioner Paul Murphy issued Roller Rabbit a cease-and-desist order in July, marking the first-ever enforcement of the ban. 'The overlay district does not allow standardized businesses in the historic downtown area,' Murphy wrote to the boutique's owners, as reported by Nantucket Current. 'Roller Rabbit meets the definition of a formula business. You are hereby ordered to immediately cease all business activity at this location.' The order stated that the shop met all the criteria to be considered a formula business - having ten or more locations worldwide and standardized elements like a common name, logo or product line. Determined to stay on the billionaire's oasis, Roller Rabbit quickly jumped through hoops to skirt to rules - changing its name and revamping the store's offerings. Now rebranded as The General Store by RR, the boutique has expanded its inventory to include brands like Lands' End, Dempsey & Carroll, Minnow and Long Wharf Supply Co. 'We've evolved our Centre Street seasonal pop-up into a new multi-brand concept,' Roller Rabbit Chief Marketing Officer Carolyn Phillips told the Current via email. 'This reimagined space features a curated selection of products not only from Roller Rabbit, but also from beloved brands that align with the spirit and lifestyle of Nantucket,' she added. Nantucket Planning and Land Use Services (PLUS) director Leslie Snell said the ban does not apply to pop-ups, which is what Roller Rabbit now claims to be. 'The formula business bylaw applies to any business within the overlay district regardless of duration,' she told the outlet. However, the PLUS team doesn't routinely screen every new business for chain store compliance, they only step in when a business asks for a review, leaving enforcement largely driven by self-reporting or complaints. 'No town permits are required for retail stores, so there isn't an opportunity for advance review,' Snell added. 'We review for compliance based on complaints or our own observations.' Roller Rabbit is known for its high-end women's sleepwear, often distinguished by whimsical prints - monkeys, florals and vibrant color palettes being just a few. Shoppers can expect Roller Rabbit pajamas priced from approximately $128 to $148 or more, according to the website. Each set is crafted in small batches from luxe Pima cotton and adorned with artisanal touches like block prints and embroidery. While critics balk at the steep prices, loyal fans point to the heirloom quality and distinctive designs as justification for the splurge - though it remains to be seen how many new customers will be secured on Nantucket.
