Did Tesla CEO Musk Discuss a Chip Agreement with Samsung's Chairman Lee?
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Synopsis
In a significant development, Tesla's CEO Elon Musk and Samsung's Chairman Lee Jae-yong have discussed a groundbreaking semiconductor supply deal. This partnership could redefine the industry landscape as both companies aim to leverage their strengths for a successful collaboration. Stay tuned as we uncover the implications of this collaboration for the future of AI technology.
Key Takeaways
- Musk and Lee discussed a strategic partnership.
- Samsung will manufacture Tesla's AI6 chip.
- The contract is worth 22.8 trillion won.
- This is Samsung's largest chip order ever.
- The partnership highlights the importance of collaboration in technology.
Seoul, July 30 (NationPress) Tesla's Chief Executive Officer (CEO) Elon Musk revealed that he recently had conversations regarding a semiconductor supply agreement with Samsung Electronics Chairman, Lee Jae-yong.
In response to a comment on his X account Tuesday (U.S. time), where a user stated that Samsung Electronics "has no idea what they signed up for," Musk clarified, "They do."
"I conducted a video call with the chairman and the senior team at Samsung to discuss what a genuine partnership would entail," he added, emphasizing the intention to "leverage the strengths of both companies for a successful collaboration."
Later, while addressing another user who remarked that "Samsung is undoubtedly the underdog in chip manufacturing," Musk defended the South Korean tech firm by stating: "Both TSMC and Samsung are outstanding companies. It's an honor to collaborate with them."
Shortly after Samsung Electronics unveiled a contract worth 22.8 trillion won (approximately US$16.5 billion) to provide artificial intelligence (AI) chips to an unidentified customer, Musk disclosed that Tesla was the partner behind this contract, according to reports from Yonhap news agency.
He noted that Samsung Electronics will be producing Tesla's upcoming AI6 chip at its new semiconductor facility in Texas, underscoring, "The strategic significance of this is challenging to exaggerate."
Meanwhile, Chairman Lee traveled to Washington, D.C., on Tuesday amidst ongoing tariff discussions between South Korea and the U.S. ahead of Friday's trade deadline.
While he did not specify the purpose of his trip to the U.S., Lee is anticipated to discuss global business collaborations and seek new opportunities with key partners.
This contract accounts for 7.6 percent of Samsung Electronics' total revenue of 300.9 trillion won last year and represents the largest chip order ever received by Samsung Electronics.
Tesla is accelerating its development of the full self-driving (FSD) assistance system using AI4, AI5, and AI6 chips.
Point of View
This partnership between Tesla and Samsung Electronics signifies a strategic alliance that could greatly influence the global semiconductor market. It showcases the importance of collaboration in technology, particularly in the rapidly evolving landscape of AI. With both companies at the forefront of innovation, their partnership may lead to groundbreaking advancements.
NationPress
30/07/2025
Frequently Asked Questions
What did Elon Musk discuss with Samsung's Chairman?
Elon Musk discussed the details of a semiconductor supply agreement with Samsung's Chairman, focusing on a genuine partnership to leverage both companies' strengths.
What is the significance of the Samsung-Tesla deal?
The deal represents a substantial contract for Samsung, accounting for 7.6 percent of its total revenue, marking a significant milestone in their chip production capabilities.
What will Samsung manufacture for Tesla?
Samsung Electronics will produce Tesla's next-generation AI6 chip at its new semiconductor plant in Texas.
How does Musk view Samsung in the chipmaking industry?
Musk defends Samsung, stating that both Samsung and TSMC are exceptional companies and it is an honor to work with them.
What is the potential impact of this partnership?
This collaboration could pave the way for innovative advancements in AI technology and enhance the capabilities of Tesla's self-driving systems.
