Musk Confirms Samsung Partnership For Tesla’s Next-Gen AI Chip Production

Tesla CEO Elon Musk has confirmed his company’s collaboration with Samsung Electronics on a major semiconductor supply deal, following a high-level video call with Samsung Chairman Lee Jae-yong and senior executives.

Responding to a comment on his X account on Tuesday (US time) suggesting “Samsung 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 added. “Use the strengths of both companies to achieve a great outcome.”

In response to another user who described Samsung as the ‘underdog’ in the chipmaking industry, Musk defended the South Korean company, saying, “Both TSMC and Samsung are great companies. It is an honor to work with them.”

Samsung to Produce Tesla’s AI6 Chips in Texas

Soon after Samsung announced a 22.8 trillion-won (US$16.5 billion) chip supply deal to an unnamed client, Musk confirmed via X that Tesla is the customer behind the contract, according to Yonhap news agency.

Samsung will produce Tesla’s upcoming AI6 chips at its newly built semiconductor facility in Texas. Musk underscored the move’s significance, saying, “The strategic importance of this is hard to overstate.”

Meanwhile, Samsung Chairman Lee travelled to Washington, DC, on Tuesday amid ongoing trade talks between South Korea and the US.

Although details of his visit remain undisclosed, he will likely engage with key partners and explore global business opportunities.

The Tesla deal represents 7.6% of Samsung’s total 2023 revenue of 300.9 trillion won, making it the largest single chip order in the company’s history.

Tesla continues to expand its self-driving capabilities through the development of its AI4, AI5, and AI6 chips, with this new partnership signalling a major step forward in its full self-driving (FSD) ambitions.

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