Samsung may soon make chips for Elon Musk's xAI

A few months ago, Samsung signed a $16.5 billion deal with Elon Musk’s Tesla to make its next-generation chip, AI6. Later, the two firms shook hands for the South Korean tech giant to manufature the EV maker’s current generation chip, the AI5. Before the two firms signed these deals, Samsung was already making Tesla’s previous-generation chip, the AI4. Well, Samsung and Elon Musk seem to be partnering on even more projects.

On X (formerly Twitter), tipster Jukan claims that Samsung Foundry has finalized a contract with the artificial intelligence (AI) firm xAI. It is an artificial intelligence company founded by Elon Musk and makes the Grok chatbot. While the tipster didn’t say what the contract is actually for, it is most likely for making chips for its AI accelerators. To that extent, the tipster claims that Samsung has ordered three EUV tools (one of the machines required to make semiconductor chips) at its chip fabrication plant in Taylor, USA.

Lately, Samsung Foundry has made major advancements in chip development, especially with its 2nm fabrication process. That has helped it attract Apple and Tesla. With xAI jumping on the bandwagon and AMD expected to join soon, Samsung seems to be making a strong comeback.

With these contracts in place, Samsung has a real chance to offer tough competition to its primary rival TSMC. On a related topic, Samsung recently announced its latest flagship chipset for mobile devices, the Exynos 2600. You can read more about it here.