💥 Musk picks Samsung for AI chips

Tuesday’s AI Report

• 1. 💥 Musk picks Samsung for AI chips
• 2. 🤖 Use AI with 100% accuracy with PromptQL
• 3. 🌍 How AI sped up sales transaction processing
• 4. 🏗️ Build advanced AI chatbots with ChatNode
• 5. ⚙️ Trending AI tools
• 6. 🛑 Trump's AI chip export decision slammed
• 7. 📅 Microsoft catches up with AI browser
• 8. 📑 Recommended resources

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Musk picks Samsung for AI chips

🚨 Our Report

Elon Musk has signed a $16.5B multi-year deal with Samsung for them to make “Tesla’s next-generation AI6 chips” at their new AI chip manufacturing plant in Texas, which will run until 2033, and, according to Musk, is just the beginning.

🔓 Key Points

Samsung already makes Tesla AI4 chips, and Tesla is also working with chip-maker TSMC to manufacture AI5 chips, which have been designed for Tesla’s self-driving assistant system (aiming to make Tesla’s autonomous).
Samsung will be "dedicated to making Tesla's next-generation AI6 chip," which will be an all-in-one chip that can power everything from Tesla's self-driving systems to Optimus, Tesla’s humanoid robot.
Samsung has also agreed to let Musk help to improve chip manufacturing efficiency, with Musk himself “walking the line personally, to accelerate the pace of progress” as the plant is “conveniently located” near his house.

🔐 Relevance

For Samsung, this deal—which will be the equivalent of nearly 8% of its revenue in 2024—is huge: When it originally opened its Texas plant in 2023, it struggled to attract or retain any big-name customers, and according to reports, was forced to postpone taking deliveries of chipmaking equipment, and delayed the plant's operational start until 2026. For Musk, “the strategic importance of this [deal] is hard to overstate.” AI chips are crucial to Musk’s plan to transition Tesla from being a simple EV manufacturer into an AI and robotics company. Plus, Tesla gets access to US-produced AI chips, minimizing supply chain complexity.

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How AI sped up sales transaction processing

SAP—a multinational software corporation—processed sales transactions through POS systems, but many failed due to technical or human errors.
Its existing error detection system needed manual reviews and corrections by staff which was costly, time consuming, and error prone.
It developed an AI tool that used past transaction data to identify errors and algorithms that applied corrections without human intervention.
By automating transactional error detection and correction SAP streamlined the transaction processing workflow, leading to faster processing times.

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Two weeks ago, we reported that Trump had allowed NVIDIA to start selling its H20 AI chips to China again, after previously imposing harsh restrictions which reportedly would cost NVIDIA $16B in revenue.
But 20 national security experts have written a letter urging Trump to reverse this decision, calling it “a strategic misstep” that will have catastrophic effects on the USA’s competitive AI edge.
The letter warns that the resale of H20 chips to China will: Accelerate China’s “frontier AI capabilities,” be used for military purposes, worsen the AI chip supply/demand issue in the US, and weaken US chip export controls.

FULL STORY

Microsoft has launched an experimental, opt-in feature—Copilot Mode—which turns its web browser Edge into an agentic/AI-powered one, so it understands what the user is researching and predicts what they want next.
Copilot Mode enables Edge users to use voice commands for web browsing, has an AI chatbot that answers questions about webpages, and will suggest other webpages based on a user's browsing history.
Plus—like other rival AI browsers like Perplexity, Comet, and ChatGPT, Agent—it can perform a variety of tasks such as booking appointments, drafting content, and creating shopping lists, on behalf of the user.

FULL STORY

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