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Musk Says Tesla, Samsung Electronics Sign $16.5 Billion Chip Supply Deal 

The Tesla logo is seen at the company's stand during the World Artificial Intelligence Conference (WAIC) at the Shanghai World Expo and Convention Center in Shanghai on July 28, 2025. (AFP) 
The Tesla logo is seen at the company's stand during the World Artificial Intelligence Conference (WAIC) at the Shanghai World Expo and Convention Center in Shanghai on July 28, 2025. (AFP) 
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Musk Says Tesla, Samsung Electronics Sign $16.5 Billion Chip Supply Deal 

The Tesla logo is seen at the company's stand during the World Artificial Intelligence Conference (WAIC) at the Shanghai World Expo and Convention Center in Shanghai on July 28, 2025. (AFP) 
The Tesla logo is seen at the company's stand during the World Artificial Intelligence Conference (WAIC) at the Shanghai World Expo and Convention Center in Shanghai on July 28, 2025. (AFP) 

Tesla CEO Elon Musk said the US automaker had signed a $16.5 billion deal to source chips from Samsung Electronics, a move expected to bolster the South Korean tech giant's loss-making contract manufacturing business.

Samsung shares rose more than 4% after the news.

"Samsung's giant new Texas fab will be dedicated to making Tesla's next-generation AI6 chip. The strategic importance of this is hard to overstate," Musk said in a post on X on Monday.

If Musk was referring to Samsung's upcoming Taylor, Texas, plant, the deal could revive the project that has faced delays amid Samsung's struggles to retain and win major customers.

"Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house," Musk said on his social media platform.

Samsung had earlier announced the $16.5 billion chip supply deal without naming the client, saying the customer had requested confidentiality about the details of the deal, which will run through the end of 2033.

Three sources briefed about the matter told Reuters that Tesla was the customer for the deal.

The deal comes as Samsung faces mounting pressure in the race to produce artificial intelligence chips, where it trails rivals such as TSMC and SK Hynix. This lag has weighed heavily on its profits and share price.

Samsung, the world's top memory chip maker, also makes logic chips designed by customers through its foundry business.

Pak Yuak, an analyst at Kiwoom Securities, said the latest deal would help reduce losses at Samsung's foundry business, which he estimated exceeded 5 trillion won ($3.63 billion) in the first half of the year.

Analysts say Samsung has struggled with the defection of key clients to TSMC for advanced chips. TSMC counts Apple, Nvidia and Qualcomm among its customers.

The Samsung-Tesla deal may also be significant for South Korea, which is seeking US partnerships in chips and shipbuilding amid last-ditch efforts to reach a trade deal to eliminate or reduce potential 25% US tariffs.

Samsung is grappling to boost production yields of its latest 2-nanometer technology, but the order is unlikely to involve the cutting-edge tech, said Lee Min-hee, an analyst at BNK Investment & Securities.

Samsung has been losing market share to TSMC in contract manufacturing, underscoring technological challenges the firm faces in mastering advanced chip manufacturing to attract clients like Apple and Nvidia, analysts said.

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Technology

India Approves Two Semiconductor Projects Worth $414 Million

Prime minister of India Narendra Modi leaves after the hand shake photo with President of Vietnam To Lam prior to a meeting at Hyderabad House in New Delhi, India, 06 May 2026. EPA/RAJAT GUPTA
Prime minister of India Narendra Modi leaves after the hand shake photo with President of Vietnam To Lam prior to a meeting at Hyderabad House in New Delhi, India, 06 May 2026. EPA/RAJAT GUPTA
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India Approves Two Semiconductor Projects Worth $414 Million

Prime minister of India Narendra Modi leaves after the hand shake photo with President of Vietnam To Lam prior to a meeting at Hyderabad House in New Delhi, India, 06 May 2026. EPA/RAJAT GUPTA
Prime minister of India Narendra Modi leaves after the hand shake photo with President of Vietnam To Lam prior to a meeting at Hyderabad House in New Delhi, India, 06 May 2026. EPA/RAJAT GUPTA

India said it had approved two new semiconductor projects worth $414 million, as the government accelerates efforts to establish the country as a global electronics powerhouse.

The projects -- an LED display facility and a semiconductor packaging unit -- were cleared late Monday, taking the total number of facilities in India to 12, with a total investment of about $17.2 billion.

New Delhi launched its push into domestic chipmaking in 2021 and has since backed a range of fabrication, design and packaging units as part of a broader strategy to cut import dependence and strengthen supply chains.

Prime Minister Narendra Modi said the two new projects were a part of "our efforts towards making India a leader in the global semiconductor value chain".

"India's advances in the world of semiconductors will boost economic transformation, technological self-reliance and encourage the innovation ecosystem," AFP quoted him as saying on social media.

The LED project will be an "integrated facility for compound semiconductor fabrication" aimed at producing mini and micro display modules, the government said in a statement.

The packaging unit will cater to automotive, industrial and electronics sectors.

The projects would provide a "significant boost" to the country's semiconductor ecosystem and "complement the growing world class chip design capabilities coming up in the country", it said.

India's chip market has risen from around $38 billion in 2023 to an estimated $45-$50 billion in 2024-2025.

The government is targeting $100-$110 billion by 2030.

Several previously approved plants have begun production, with two facilities already starting commercial shipments.

Technology

Major Publishers Sue Meta for Copyright Infringement Over AI Training

Cars drive past a sign of Meta, the new name for the company formerly known as Facebook, at its headquarters in Menlo Park, California, US, October 28, 2021. (Reuters)
Cars drive past a sign of Meta, the new name for the company formerly known as Facebook, at its headquarters in Menlo Park, California, US, October 28, 2021. (Reuters)
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Major Publishers Sue Meta for Copyright Infringement Over AI Training

Cars drive past a sign of Meta, the new name for the company formerly known as Facebook, at its headquarters in Menlo Park, California, US, October 28, 2021. (Reuters)
Cars drive past a sign of Meta, the new name for the company formerly known as Facebook, at its headquarters in Menlo Park, California, US, October 28, 2021. (Reuters)

Publishers Elsevier, Cengage, Hachette, Macmillan and McGraw Hill sued Meta Platforms in Manhattan federal court on Tuesday, alleging that the tech giant misused their books and journal articles to train its artificial intelligence model Llama.

The publishers, as well as author Scott Turow, alleged in the proposed class action complaint that Meta pirated millions of their works and used them without permission to train its large language models to respond to human prompts.

“AI is powering transformative innovations, ‌productivity and creativity ‌for individuals and companies, and courts have rightly ‌found ⁠that training AI ⁠on copyrighted material can qualify as fair use," a Meta spokesperson responded in a statement on Tuesday.

"We will fight this lawsuit aggressively.”

The publishers allege that Meta pirated works ranging from textbooks to scientific articles to novels including "The Fifth Season" by N.K. Jemisin and "The Wild Robot" by Peter Brown for its ⁠AI training.

They asked the court for ‌permission to represent a larger class ‌of copyright owners and an unspecified amount of monetary damages.

"Meta’s mass-scale ‌infringement isn’t public progress, and AI will never be properly ‌realized if tech companies prioritize pirate sites over scholarship and imagination," Maria Pallante, president of the Association of American Publishers, said in a statement.

The lawsuit opens a new front in the ongoing copyright ‌battle between creators and tech companies over AI training, in which dozens of authors, news outlets, ⁠visual ⁠artists and other plaintiffs have sued companies including Meta, OpenAI and Anthropic for infringement.

All of the pending cases will likely revolve around whether AI systems make fair use of copyrighted material by using it to create new, transformative content.

The first two judges to consider the matter issued diverging rulings last year.

Amazon- and Google-backed Anthropic was the first major AI company to settle one of the cases, agreeing last year to pay a group of authors $1.5 billion to resolve a class-action lawsuit that could have cost the company billions more in damages for alleged piracy.

Technology

Microsoft, Google and xAI to Give US Govt Early Access to AI Models for Security Checks

A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. (Reuters)
A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. (Reuters)
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Microsoft, Google and xAI to Give US Govt Early Access to AI Models for Security Checks

A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. (Reuters)
A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. (Reuters)

Microsoft, Google and Elon Musk’s xAI agreed to give the US government early access to new artificial intelligence models for national security testing, as US officials grow alarmed by the hacking capabilities of Anthropic’s newly unveiled Mythos.

The Center for AI Standards and Innovation at the Department of Commerce said on Tuesday that the agreement would allow it to evaluate the models before deployment and conduct research to assess their capabilities and security risks.

The agreement fulfills a pledge the Trump administration made in July 2025 to partner with technology companies to vet their AI models for “national security risks."

Microsoft will work with ‌US government scientists ‌to test AI systems “in ways that probe unexpected behaviors,” ‌the company ⁠said in a statement. ⁠Together they will develop shared datasets and workflows for testing the company’s models, the company said. Microsoft signed a similar agreement with the UK’s AI Security Institute, according to the statement.

Concern is growing in Washington over the national security risks posed by powerful AI systems. By securing early access to frontier models, US officials are aiming to identify threats ranging from cyberattacks to military misuse before the tools are widely deployed.

The development ⁠of advanced AI systems including Anthropic's Mythos has in recent weeks ‌created a stir globally, including among US officials ‌and corporate America, over their ability to supercharge hackers.

"Independent, rigorous measurement science is essential to understanding ‌frontier AI and its national security implications," CAISI Director Chris Fall said in ‌a statement.

The move builds on previous agreements with OpenAI and Anthropic, established in 2024 under the Biden administration when CAISI was known as the US Artificial Intelligence Safety Institute.

Under former President Joe Biden, the institute focused on developing AI tests, definitions and voluntary safety standards. It ‌was led by Biden tech adviser Elizabeth Kelly, who has since joined Anthropic, according to her LinkedIn profile.

CAISI, which serves ⁠as the government's ⁠main hub for AI model testing, said it had already completed more than 40 evaluations, including on cutting-edge models not yet available to the public.

Developers frequently hand over versions of their models with safety guardrails stripped back so the center can probe for national security risks, the agency said.

xAI did not immediately respond to a request for comment. Google declined to comment.

Last week, the Pentagon said it had reached agreements with seven AI companies to deploy their advanced capabilities on the Defense Department's classified networks as it seeks to broaden the range of AI providers working across the military.

The Pentagon announcement did not include Anthropic, which has been embroiled in a dispute with the Pentagon over guardrails on the military's use of its AI tools.