<div id="readability-page-1"><div><div>Tesla, Inc. (NASDAQ:TSLA) chief Elon Musk announced that Samsung Electronics Co., Ltd. (OTC:SSNLF) will now co-produce the automaker’s next-generation artificial intelligence chip, the AI5.The move signals a major win for Samsung as it vies for market share against the key contract chip manufacturer, Taiwan Semiconductor Manufacturing Co. (NYSE:TSM).<h2>Musk Revises Previous Manufacturing Plans</h2>During Tesla’s third-quarter investor conference call on Wednesday, Musk explicitly corrected his own previous public statements, which had indicated that Taiwan Semiconductor would be the sole manufacturer for the AI5 chip, Bloomberg reported on Thursday.Also Read: Tesla’s AI And Robotaxi Push Could Add $1 Trillion, Analyst SaysTesla designs these specialized AI chips to power its autonomous driving features and its developing line of robots, using them alongside processors from Nvidia Corporation (NASDAQ:NVDA).In July, Musk confirmed reports of a $16.5 billion deal for Samsung to manufacture Tesla’s future AI6 chip. At that time, he noted that while Samsung was already producing the older AI4 chip, Taiwan Semiconductor would handle the AI5—a plan that has now evolved to include both manufacturing giants.While still a distant second to Taiwan Semiconductor, the South Korean firm is making substantial investments in a new production hub near Austin, Texas, where Tesla is also headquartered.<h2>AI Fuels Samsung’s Profit Surge</h2>Samsung looks to report its largest quarterly profit in more than three years. The intense demand for AI hardware has significantly boosted sales of Samsung’s specialized High-Bandwidth Memory (HBM) while also constraining the supply and driving up prices for its core business of conventional memory chips.CLSA Securities Korea and Counterpoint analysts attributed the success to several key factors. Samsung’s HBM shipments surged dramatically. This, combined with strong demand from both AI and general-purpose servers, has pushed prices for standard DRAM and NAND chips.Looking ahead, Samsung is solidifying its market position for future growth. The company recently secured a critical win by getting its latest HBM chips approved for use in Nvidia’s advanced AI systems.Price Action: TSLA stock was trading lower by 3.30% to $424.48 at last check Thursday. TSM was up 0.84%.<ul> <li>Is Amazon The Next Big AI Winner? One Analyst Thinks Wall Street Is Wrong</li> </ul>Photo by Frederic Legrand – COMEO via Shutterstock</div></div></div>

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Tesla's CEO Elon Musk announced a partnership with Samsung to co-produce the AI5 chip, previously thought to be solely manufactured by Taiwan Semiconductor. This shift marks a significant win for Samsung, which is investing in a new production hub in Texas. The demand for AI hardware is boosting Samsung's profits, with strong sales of High-Bandwidth Memory (HBM) driving growth. Meanwhile, Tesla's stock fell by 3.30% to $424.48, while Taiwan Semiconductor's stock rose by 0.84%.

- Tesla, Inc. announced that Samsung Electronics will co-produce its next-generation AI chip, the AI5, marking a significant shift from previous plans to rely solely on Taiwan Semiconductor.  
- This collaboration comes as Samsung aims to increase its market share in the competitive chip manufacturing sector, particularly against Taiwan Semiconductor.  
- The demand for AI hardware has led to a surge in Samsung's profits, driven by increased sales of specialized memory chips and a new production hub near Tesla's headquarters in Texas.

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Not Just Taiwan Semiconductor: Elon Musk To Also Rely On Samsung For Tesla's AI Chips