Samsung and Elon Musk may be taking their partnership to the next level. A new report suggests that Samsung Foundry is in discussions to manufacture semiconductor chips for xAI, the artificial intelligence startup founded by Musk and best known for developing the Grok chatbot. If finalised, the deal would further strengthen Samsung’s position in the fast-growing AI chip market and deepen its ties with Musk-led companies.
Samsung Foundry and xAI chip deal: What we know so far
The information was first shared by tipster Jukan on X, who claimed that Samsung Foundry has already finalised a contract with xAI. While the tipster did not reveal specific technical or commercial details, a SamMobile report adds that Samsung is expected to manufacture chips that will be used in xAI’s AI accelerators. These accelerators are designed to handle the heavy computational workloads required for training and running large AI models like Grok.
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Lending even more credence to the report, xAI has reportedly purchased three extreme ultraviolet (EUV) lithography tools for use in its IC fabrication plant in Taylor, Texas. EUV tools are some of the most advanced and costly machines to be found in semiconductor manufacturing, and their adoption generally indicates a company has plans for state-of-the-art chip production.
Expanding Samsung’s relationship with Elon Musk
If the xAI deal goes through, it would mark yet another collaboration between Samsung and Elon Musk. Earlier this year, Samsung signed a major agreement to manufacture Tesla’s AI6 chip, which is expected to power the automaker’s next-generation self-driving and AI systems. Shortly after that, reports also confirmed that Samsung would produce Tesla’s AI5 chip.
If xAI does end up becoming a Tesla customer, it would be propelled by Samsung Foundry to secure clients with the likes of off-The South Korean tech giant seems to be slowly but surely amassing a network of prominent AI and automotive customers. This would greatly assist to go up against TSMC a bit more head-on, which has a strong hold on AI-focused companies manufacturing advanced chips.
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Exynos 2600 highlights Samsung’s push in advanced chipmaking
This report is also interesting in context, given the fact that Samsung has only recently announced its newest flagship mobile processor, the Exynos 2600. The chipset is world’s first manufactured using a 2nm production process and packs enhanced Gate-All-Around (GAA) transistor technology. Samsung touts the Exynos 2600 as a significant step up in performance and power consumption.
The processor is expected to feature in the upcoming Samsung Galaxy S26 series of smartphones that could have – if ongoing rumors are anything to go by – models like the Galaxy S26, Galaxy S26 Plus, and Galaxy S26 Ultra. Alongside potential AI chip deals for customers such as xAI, it points to Samsung’s wider strategy of reclaiming its place at the forefront of next-generation semiconductor production.
While neither Samsung nor xAI has officially confirmed the partnership yet, the growing pattern of collaboration between Samsung and Musk-led companies suggests that an announcement could arrive sooner rather than later.