US Charges Two Men in Alleged Nvidia Chip Smuggling Scheme to China 
SoftBank Shares Slide as Oracle’s AI Spending Plans Fuel Market Jitters 
Trello Outage Disrupts Users as Access Issues Hit Atlassian’s Work Management Platform 
Mizuho Raises Broadcom Price Target to $450 on Surging AI Chip Demand 
SpaceX Reportedly Preparing Record-Breaking IPO Targeting $1.5 Trillion Valuation 
GameStop Misses Q3 Revenue Estimates as Digital Shift Pressures Growth 
Evercore Reaffirms Alphabet’s Search Dominance as AI Competition Intensifies 
Air Force One Delivery Delayed to 2028 as Boeing Faces Rising Costs 
SoftBank Eyes Switch Inc as It Pushes Deeper Into AI Data Center Expansion 
IBM Nears $11 Billion Deal to Acquire Confluent in Major AI and Data Push 
Taiwan Opposition Criticizes Plan to Block Chinese App Rednote Over Security Concerns 
Rio Tinto Signs Interim Agreement With Yinhawangka Aboriginal Group Over Pilbara Mining Operations 
EssilorLuxottica Bets on AI-Powered Smart Glasses as Competition Intensifies 
Coca-Cola’s Costa Coffee Sale Faces Uncertainty as Talks With TDR Capital Hit Snag 
U.S. Greenlights Nvidia H200 Chip Exports to China With 25% Fee 
Microsoft Unveils Massive Global AI Investments, Prioritizing India’s Rapidly Growing Digital Market 
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.
