Elon Musk has thrown his weight behind Tesla’s landmark US$16.5bn (A$25.3 billion) deal with Samsung Electronics, confirming direct top-level talks and labelling the partnership a “real alliance” for the AI future.

In a post on X, the Tesla CEO revealed he personally held a video call with Samsung Chairman Jay Y. Lee and senior execs to finalise the agreement, which will see Samsung manufacture Tesla’s next-gen AI6 chips at its Texas foundry.

The chips are a core part of Tesla’s Full Self-Driving (FSD) tech and its wider AI ambitions including Dojo, the in-house supercomputer powering Tesla’s self-learning systems.

Musk responded to sceptics online, brushing aside concerns about Samsung’s capabilities: “They do [know what they signed up for],” he posted. “We’re going to leverage both companies’ strengths to achieve something truly great.”

Samsung’s Texas-based fabrication plant, previously lacking major clients, will now be dedicated to the AI6 project – a huge win for the company’s struggling foundry unit which has lagged behind rival TSMC.

Musk also hinted the actual deal value could soar well beyond the $25B figure, calling it “just the bare minimum.”

The announcement sent Samsung shares climbing for the third straight day, hitting ₩72,900 (up 3.26%) – its highest level in nearly a year.

Meanwhile, Chairman Lee has flown to Washington amid speculation over final tariff negotiations with the US government.

Samsung Electronics Chairman Lee Jae-yong (third from left) and Tesla CEO Elon Musk (fourth from left) during their meeting at Samsung Research America in May 2023. (Samsung Electronics)

Though details remain under wraps, sources suggest Samsung may offer further US investments as part of a broader semiconductor deal.

The partnership arrives at a critical time for both firms.

Tesla is pushing harder into AI despite a recent Q2 earnings slump and Samsung is chasing credibility in the race for 2nm chip dominance.

“Both TSMC and Samsung are great companies,” Musk added. “It is an honour to work with them.”

The AI6 chips will power future Tesla FSD updates, its robotaxi platform, and possibly its humanoid robot, Optimus.