Elon Musk and Samsung’s Big Bet: A $16.5 Billion AI Chip Deal!

Tesla CEO Elon Musk revealed Wednesday that he had a video conference with Samsung Electronics Chairman Lee Jae-yong to discuss a substantive partnership regarding their recent $16.5 billion AI chip supply deal.

Responding to a user on X who suggested Samsung might be unaware of what they’ve committed to, Musk asserted, “They do.”

“I engaged in a video call with the chairman and senior executives of Samsung to outline the potential of a genuine partnership,” Musk wrote. “We aim to leverage the strengths of both companies to achieve exceptional results.”

Earlier this week, Samsung announced securing a record-breaking $16.5 billion supply agreement, which Musk later confirmed involves Tesla’s next-generation AI6 chips for Full Self-Driving technology. Musk emphasized that the disclosed amount was merely the baseline, hinting that the deal’s actual value could be substantially higher.

In the wake of the announcement and Musk’s endorsement, Samsung’s stock has maintained its upward trajectory for three consecutive days. On the day of the contract revelation, Samsung shares closed at 70,400 KRW ($52.80), surpassing the 70,000 KRW ($52.50) threshold for the first time in nearly 10 months.

By midday Wednesday, the company’s share price had climbed to 72,900 KRW ($54.68), representing a 3.26 percent increase from the previous day’s close.

Addressing another X post that questioned Samsung’s capability to produce chips using cutting-edge 2-nanometer technology and labeled it an underdog compared to Taiwan’s TSMC, Musk responded diplomatically, “Both TSMC and Samsung are exemplary companies. It’s a privilege to collaborate with them.”
In a related development, Samsung chief Lee embarked on a trip to Washington on Wednesday, fueling speculation about potential connections to the Korean government’s ongoing tariff negotiations with the United States.

While the specific purpose of Lee’s U.S. visit remains undisclosed, industry insiders anticipate that he will engage with key business partners to explore global cooperation opportunities. Additionally, Lee is expected to support the Korean government’s final push in tariff discussions, which must be concluded before August 1 – the date when the U.S. is set to reinstate a 25 percent reciprocal tariff.

An exchange between Tesla CEO Elon Musk and another X user on July 30, 2025]