Major news has come from leading corporations, Samsung Electronics and Tesla. These developments could be pivotal for artificial intelligence (AI).

On July 28, it was reported that Samsung Electronics signed a $16.5 billion contract with Tesla for the supply of semiconductors — a significant win for Samsung’s business.

The deal involves contract-based chip manufacturing. However, the details of the project, including the identity of the partner and specific terms, will remain confidential until the end of 2033, Samsung Electronics noted. Nevertheless, according to Bloomberg, Tesla Inc. is listed as the client in the agreement. Besides, the company is known to be a customer of Samsung’s chips.

This long-term contract signed by Samsung Electronics highlights the company's growing competitiveness in the chip manufacturing sector. Samsung has been leading the global race to provide cutting-edge semiconductor capabilities for various industries — from AI to data centers.

Importantly, Samsung Electronics is the world’s largest producer of memory chips and the second-largest semiconductor manufacturer. The top spot in the industry belongs to Taiwan Semiconductor Manufacturing Co.