Tesla CEO Musk says he discussed chip deal with Samsung Chairman Lee

Samsung Electronics Executive Chairman Lee Jae-yong, center, poses with Tesla CEO Elon Musk, sixth from left, during the latter's visit to Samsung Electronics' semiconductor lab in Silicon Valley, Calif., May 10, 2023. Courtesy of Samsung Electronics

Tesla Chief Executive Officer (CEO) Elon Musk said he discussed the details of a recent semiconductor supply deal with Samsung Electronics Chairman Lee Jae-yong.

In a response to a user's comment on his X account on Tuesday (U.S. time) that Samsung Electronics "has no idea what they signed up for," Musk replied, "They do.

"I had a video call with the chairman and senior leadership of Samsung to go over what a real partnership would be like," he continued, adding they will "use the strengths of both companies to achieve a great outcome."

Later, when another user commented that "Samsung is definitely the underdog when it comes to chipmaking," Musk defended the Korean tech giant, saying: "Both TSMC and Samsung are great companies. It is an honor to work with them."

Shortly after Samsung Electronics announced a 22.8 trillion-won ($16.5 billion) deal to supply artificial intelligence (AI) chips to an undisclosed customer, Musk revealed that Tesla was the partner behind the contract.

He said Samsung Electronics will manufacture Tesla's next-generation AI6 chip at its new semiconductor plant in Texas, stressing, "The strategic importance of this is hard to overstate."

Meanwhile, Samsung Chairman Lee departed for Washington, D.C., on Tuesday amid ongoing Korea–U.S. tariff discussions ahead of Friday's trade deadline.

Although he did not elaborate on the purpose of his U.S. trip, Lee is expected to discuss global business cooperation and explore new business opportunities with major partners.