Samsung Aims to Secure Major Orders for xAI’s First AI Chip Following Success with Apple and Tesla

Samsung may be on the verge of securing a significant chip order from Elon Musk, specifically for xAI’s inaugural ASIC chip. This development comes at a time when the South Korean tech giant is experiencing a notable upswing in the semiconductor sector.

Potential Collaboration Between Samsung and xAI: Insights and Implications

Recently, Samsung made headlines by successfully procuring orders for Tesla’s AI6 chips, which represent a lucrative contract valued at $16.5 billion. Additionally, the firm has expanded its footprint by producing advanced image sensors for Apple, demonstrating its growing appeal to external clients. A report from BusinessPost suggests that Samsung could potentially be selected to manufacture xAI’s specialized AI chips, leveraging its established partnership with Tesla.

According to the available information, Samsung is focusing on a ‘foundry revival’ strategy that includes enhancing its 2nm production capabilities. The company is reportedly advancing with its SF2 technologies and has plans to implement 2nm processes at its Taylor facility in the coming years, reflecting its commitment to producing cutting-edge technology in the US. Elon Musk has recently indicated a preference for Samsung Foundry, suggesting the initial $16.5 billion Tesla deal could be just the beginning of a larger collaboration.

Samsung has reportedly completed the basic design of its second-generation 2nm GAA technology — Image Credits: Samsung

While it’s important to approach this information cautiously, as it remains speculative, the indications point towards Musk’s interest in bespoke silicon development.xAI has recently posted job openings for custom silicon developers, which unmistakably hints that an Application-Specific Integrated Circuit (ASIC) is in the works. The pivotal factor for Samsung’s success in this venture will hinge on the effectiveness of its 2nm technology. However, following the successful Tesla partnership, confidence in Samsung’s capabilities appears to be on the rise, enhancing the likelihood that it could land orders for Musk’s first custom AI chip.

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