Tesla CEO Elon Musk confirmed he had a direct video discussion with Samsung Electronics Chairman Lee Jae-yong and top executives to solidify a major chip supply agreement between the two companies.

Responding to a comment on his social media platform X suggesting Samsung didn’t fully understand the deal, Musk replied, “They do.” He added, “I had a video call with the chairman and senior leadership of Samsung to go over what a real partnership would be like. We will use the strengths of both companies to achieve a great outcome.”

Defending Samsung’s chipmaking capabilities, Musk said, “Both TSMC and Samsung are great companies. It is an honor to work with them.”

Musk’s comments came shortly after Samsung announced a record 22.8 trillion-won (US$16.5 billion) chip deal with an undisclosed partner. Musk later revealed Tesla is the company behind the deal, which involves manufacturing Tesla’s next-gen AI6 chips at Samsung’s semiconductor facility in Texas.

Calling the deal “strategically important,” Musk said the AI6 chips are vital to Tesla’s efforts to advance its full self-driving (FSD) technology, building on earlier AI4 and AI5 models.

The massive contract represents approximately 7.6% of Samsung Electronics’ total revenue for 2024, making it the largest chip order in the company’s history.

Meanwhile, Samsung Chairman Lee departed for Washington, D.C., on Tuesday, amid crucial South Korea–U.S. trade discussions. Though the reason for his trip remains undisclosed, reports suggest he will meet global partners and explore new collaborations.

The Tesla-Samsung alliance signals a deepening tech partnership between two industry giants in the AI and automotive sectors.