Samsung secures $16.5 billion deal with Tesla for AI chips

Samsung Electro-Mechanics has agreed to a major supply deal with Tesla. The agreement involves FC BGA components worth 16.5 billion dollars for AI6 chips. These chips will support Tesla's self-driving systems and Optimus robot projects.

Samsung Electro-Mechanics, a key supplier in the electronics sector, has finalized a significant partnership with Tesla. According to reports, the company has secured a 16.5 billion dollar supply deal for FC BGA (Flip Chip Ball Grid Array) components. This deal is specifically aimed at supporting Tesla's development of AI6 chips.

The AI6 chips are intended to power advancements in Tesla's self-driving systems, enhancing autonomous vehicle technology. Additionally, the components will contribute to projects involving the Optimus robot, Tesla's humanoid robotics initiative. The agreement also extends to support for Grok data centers, though details on this aspect remain limited in available information.

This collaboration underscores the growing integration between semiconductor suppliers and electric vehicle manufacturers in the pursuit of artificial intelligence applications. Samsung's role highlights its position in providing critical hardware for next-generation AI systems. No further specifics on timelines or production volumes were disclosed in the initial reports.

The deal represents a substantial investment in Tesla's AI ecosystem, building on its existing efforts in autonomous driving and robotics. Industry observers note that such partnerships are essential for scaling AI hardware production amid rising demand.

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Illustration depicting Samsung Electronics' record Q1 operating profit of 57.2 trillion won driven by AI chip demand, featuring executives celebrating amid glowing financial displays.
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Samsung Electronics forecasts record Q1 operating profit of 57.2 trillion won

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Samsung Electronics estimated a record first-quarter operating profit of 57.2 trillion won ($37.9 billion) on Tuesday, driven by surging demand for AI chips. The figure marks a 755 percent increase from a year earlier, with sales reaching 133 trillion won for the first time exceeding 100 trillion won. The results surpassed analysts' expectations amid a booming AI sector.

Elon Musk has used social media to invite South Korean engineers to join Tesla's AI chip design efforts. This recruitment aims to produce high-volume AI chips essential for Full Self-Driving technology, Optimus robots, and data centers. The move highlights South Korea's importance in Tesla's expansion into silicon production amid intensifying global competition for semiconductor talent.

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Building on last week's earnings report announcing the shift from EVs to AI and robotics, Tesla has outlined specifics on its custom AI5 and AI6 chips, next-gen Optimus robot, and ambitious 'general solution' for self-driving and bipedal robotics. The $20 billion 2026 investment underscores this transformation amid ongoing EV challenges.

SK Telecom announced on Thursday a partnership with Sweden-based Ericsson to jointly develop AI-driven mobile network technologies and advance 6G communication. Under the memorandum of understanding, the companies will promote innovative technologies in 5G environments and lay groundwork for 6G research and standardization.

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Two months after Hyundai's CES 2026 unveiling of the Atlas humanoid robot, the company's shares jumped 80 percent amid intensifying competition with Tesla's Optimus in the humanoid robotics market, projected to hit $5 trillion by 2050. While Atlas targets heavy industry from 2028, Tesla aims for affordable home use.

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