Elon Musk Confirms $16.5 Billion AI Chip Deal With Samsung Electronics
Tesla Chief Executive Officer (CEO) Elon Musk said he discussed the details of a recent semiconductor supply deal with Samsung Electronics Chairman, Lee Jae-yong.
In a response to a user's comment on his X account on Tuesday (U.S. time) that Samsung Electronics "has no idea what they signed up for," Musk replied, "They do."
"I had a video call with the chairman and senior leadership of Samsung to go over what a real partnership would be like," he continued, adding they will "use the strengths of both companies to achieve a great outcome."
Later, when another user commented that "Samsung is definitely the underdog when it comes to chipmaking," Musk defended the South Korean tech giant, saying: "Both TSMC and Samsung are great companies. It is an honor to work with them."
Shortly after Samsung Electronics announced a 22.8 trillion-won (US$16.5 billion) deal to supply artificial intelligence (AI) chips to an undisclosed customer, Musk revealed that Tesla was the partner behind the contract, reports Yonhap news agency.
He said Samsung Electronics will manufacture Tesla's next-generation AI6 chip at its new semiconductor plant in Texas, stressing, "The strategic importance of this is hard to overstate."
Meanwhile, Samsung Chairman Lee departed for Washington, D.C., on Tuesday amid ongoing South Korea-US tariff discussions ahead of Friday's trade deadline.
Although he did not elaborate on the purpose of his US trip, Lee is expected to discuss global business cooperation and explore new business opportunities with major partners.
The contract represents 7.6 percent of Samsung Electronics' total revenue of 300.9 trillion won last year and marks the largest chip order ever won by Samsung Electronics.
Tesla has been accelerating the development of its full self-driving (FSD) assistance system using the AI4, AI5 and AI6 chips.
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