With this announcement, Samsung's share price increased by 6.8 percent on Monday, while Tesla's decreased by 4.2 percent. Musk expects to see a major transformation in Tesla's vehicles in the future through AI inference chips such as 'AI Six', which will be installed in driverless automatic vehicles and Optimus humanoid robots.
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South Korean brand Samsung Electronics will make an artificial intelligence (AI) chip for American electric car maker Tesla. Tesla founder, Elon Musk, welcomed the move in a post on X.
According to him, Samsung has agreed to make 'AI Six' chips for the upcoming models of cars that will be made at Tesla's new factory in Texas.
Tesla has signed a $16.5 billion deal with Samsung. Musk responded that the strategic importance of this agreement cannot be underestimated. Although this has some commercial benefits for Samsung, it will not help Tesla to build more electric vehicles (EVs) and implement the robotaxi project quickly, according to a Reuters analysis. It is estimated that this agreement will give relief to Samsung, which is unable to protect its major customers.
With this announcement, Samsung's share price increased by 6.8 percent on Monday . On Tuesday, it increased by 0.28 percent and reached 70,600 Korean won. The 'deal' with Tesla is also expected to put the company ahead of competing companies like TSMC in manufacturing AI chips .
Since the manufacturing of the chip takes years, it seems that Tesla will not be able to benefit immediately . Currently, Tesla's EV market is slowing down and the company is not able to expand its robotaxi service . Tesla's share price fell by 4.2 percent on Monday alone. Musk has revealed the intention to see a massive transformation in Tesla in the future through AI inference chips such as 'AI Six', which will be installed in driverless autonomous vehicles and Optimus humanoid robots.
Last December, the then Biden administration announced that it would provide $4.75 billion to Samsung's factory in Texas for semiconductor chip production. It is not clear whether this agreement between Tesla and Samsung is related to the ongoing trade talks between South Korea and the US. Seoul is seeking partnerships with the U.S. in chips and shipbuilding to eliminate or reduce a possible 25 percent tariff the U.S. will impose.
