Elon Musk Announces $16.5 Billion Tesla-Samsung Chip Deal as His Net Worth Hits $405.6 Billion

Elon Musk’s net worth reached $405.6 billion, driven by rising valuations in Tesla and SpaceX. Analysts project he could achieve trillionaire status by 2027 if growth rates persist. This development stems from his investments in electric vehicles, space travel, and artificial intelligence.

Furthermore the Tesla CEO said the U.S. automaker had signed a $16.5 billion deal to source chips from Samsung Electronics.

Musk said Samsung’s new chip factory in Texas will make Tesla’s next-generation AI6 chip, potentially re-energizing the project that has faced long delays amid Samsung’s difficulties in retaining and attracting major clients.

Samsung, the world’s top memory chip maker, also produces logic chips designed by customers through its foundry business. The Texas project is central to Samsung Chairman Jay Y. Lee’s strategy to expand beyond its bread-and-butter memory chips into contract chip manufacturing.

Samsung’s shares jumped as much as 6.8% to their highest since September last year after news of the deal. Tesla shares were up 1.9% in U.S. premarket trading.