Tesla CEO Musk Confirms Chip Deal Talks with Samsung Chairman Lee

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Seoul– Tesla CEO Elon Musk confirmed that he recently held a video call with Samsung Electronics Chairman Lee Jae-yong and senior executives to discuss a major semiconductor supply deal between the two companies.

Responding to a user’s skeptical comment on his X account Tuesday (U.S. 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 wrote, adding that the companies will “use the strengths of both to achieve a great outcome.”

When another user remarked that Samsung is “definitely the underdog when it comes to chipmaking,” Musk responded, “Both TSMC and Samsung are great companies. It is an honor to work with them.”

His remarks came shortly after Samsung Electronics announced a 22.8 trillion-won (approximately $16.5 billion) deal to supply artificial intelligence (AI) chips to an undisclosed customer. Musk then revealed that Tesla is the client behind the deal, according to Yonhap news agency.

He said Samsung will manufacture Tesla’s next-generation AI6 chip at its new semiconductor facility in Texas, noting, “The strategic importance of this is hard to overstate.”

Meanwhile, Samsung Chairman Lee departed for Washington, D.C., on Tuesday amid ongoing U.S.–South Korea trade negotiations ahead of Friday’s tariff deadline. While the purpose of his visit was not officially disclosed, it is believed he will hold talks with key partners on global business cooperation and new opportunities.

The Tesla contract accounts for 7.6% of Samsung Electronics’ total revenue of 300.9 trillion won last year, marking the largest chip order in the company’s history.

Tesla is currently ramping up development of its full self-driving (FSD) system, powered by its AI4, AI5, and the forthcoming AI6 chips. (Source: IANS)