OpenAI Expands Enterprise AI Strategy With Major Hiring Push Ahead of New Business Offering 
Amazon Stock Rebounds After Earnings as $200B Capex Plan Sparks AI Spending Debate 
SpaceX Pushes for Early Stock Index Inclusion Ahead of Potential Record-Breaking IPO 
Ford and Geely Explore Strategic Manufacturing Partnership in Europe 
Rio Tinto Shares Hit Record High After Ending Glencore Merger Talks 
Alphabet’s Massive AI Spending Surge Signals Confidence in Google’s Growth Engine 
SoftBank Shares Slide After Arm Earnings Miss Fuels Tech Stock Sell-Off 
Instagram Outage Disrupts Thousands of U.S. Users 
Jensen Huang Urges Taiwan Suppliers to Boost AI Chip Production Amid Surging Demand 
CK Hutchison Launches Arbitration After Panama Court Revokes Canal Port Licences 
TSMC Eyes 3nm Chip Production in Japan with $17 Billion Kumamoto Investment 
Missouri Judge Dismisses Lawsuit Challenging Starbucks’ Diversity and Inclusion Policies 
Nvidia, ByteDance, and the U.S.-China AI Chip Standoff Over H200 Exports 
Nvidia Confirms Major OpenAI Investment Amid AI Funding Race 
Nvidia Nears $20 Billion OpenAI Investment as AI Funding Race Intensifies 
Tesla (NASDAQ:TSLA) CEO Elon Musk confirmed a $16.5 billion agreement with Samsung Electronics (KS:005930) to supply next-generation AI chips, signaling a major push in the U.S. automaker’s AI ambitions and Samsung’s foundry revival.
Musk revealed on X that Samsung’s new Texas fab will produce Tesla’s AI6 chip, calling the partnership “strategically vital.” The plant, likely Samsung’s upcoming Taylor, Texas facility, has faced delays but may gain momentum with Tesla’s involvement. Musk added that Tesla will help optimize manufacturing efficiency, pledging personal oversight of production at the nearby fab.
Samsung previously disclosed the multibillion-dollar chip contract without naming the client, citing confidentiality. Sources confirmed Tesla as the customer, with the deal running through 2033.
The agreement arrives as Samsung struggles to close the gap with TSMC and SK Hynix in the AI chip race, impacting profits and eroding its market share. Analysts estimate Samsung’s foundry business posted losses exceeding 5 trillion won ($3.63 billion) in the first half of 2025, compounded by client defections to TSMC, which serves Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), and Qualcomm (NASDAQ:QCOM).
The Tesla deal is expected to reduce Samsung’s losses and strengthen South Korea’s chip sector amid broader U.S.-Korea trade negotiations. While Samsung is developing advanced 2-nanometer technology, analysts believe Tesla’s order won’t initially use the cutting-edge process but could pave the way for future collaboration.
Samsung, the world’s largest memory chipmaker, aims to expand its logic chip and AI capabilities to compete globally as demand for high-performance chips accelerates across automotive and tech industries.
This landmark deal marks a significant step for both Tesla’s AI roadmap and Samsung’s foundry revival in the competitive semiconductor market.
