U.S. President Donald Trump gives remarks on AI infrastructure as Larry Ellison, chief technology officer of Oracle, Masayoshi Son, CEO of SoftBank, Sam Altman, CEO of OpenAI, look on in the Roosevelt Room of the White House in Washington, Jan. 21. UPI-Yonhap

Samsung Electronics is contemplating whether or not to heed SoftBank CEO Masayoshi Son's open call to join The Stargate Project, a $500 billion joint venture between OpenAI, Oracle and SoftBank for artificial intelligence (AI) infrastructure in the U.S.

Like other global tech firms, Samsung is looking to secure its future in AI, with the market already expressing strong optimism about the potential partnerships the company can offer as a turnkey player in the AI chip industry.

However, the invitation comes with strings attached, as joining the project may require massive investments from Samsung, which is already facing significant capital expenditure needs for its chipmaking business, while the benefits expected from the project remain vague and uncertain.

SoftBank CEO Masayoshi Son answers reporters' questions after meeting Samsung Electronics Executive Chairman Lee Jae-yong at Samsung's office in Seocho District, Seoul, Feb. 4. Yonhap

Open call

On Feb. 4, SoftBank CEO Son and OpenAI CEO Sam Altman had a meeting with Samsung Electronics Executive Chairman Lee Jae-yong at Samsung's office in Seocho District, Seoul.

Details of their meeting remain unknown, but Son told reporters that their talks would be about "updates to [the] Stargate project and potential cooperation with Samsung Group." He added that they had "a good discussion," with more to come.

No further details have been revealed since the meeting, but the market is already interpreting the talks as a signal toward Samsung's participation in the Stargate project, with some local newspapers even describing it as "a trilateral AI alliance between Korea, the U.S. and Japan."

Samsung's sluggish share price has been on a bullish run since then, rallying 9 percent from 51,000 won on Feb. 3 to 55,600 won on Feb. 10.

"Samsung Electronics has the ability to provide turnkey AI infrastructure solutions, backed by its large-scale AI chip production capacity and the ownership of manufacturing memory and foundry facilities for AI data centers," KB Securities analyst Kim Dong-won said. "All of these factors make Samsung a strategic partner for the Stargate project."

OpenAI CEO Sam Altman at the media day event of Kakao at The Plaza Seoul, Feb. 4 / Korea Times photo by Shim Hyun-chul

Samsung Electronics is currently capable of mass-producing high-bandwidth memory (HBM) chips — fourth-generation HBM3 and fifth-generation HBM3e — for advanced AI processors, and is now developing the next-generation HBM4 chip. The company's portfolio also includes enterprise solid-state drives, or SSDs and graphic DDR7 chips, which also empower graphics processing units, or GPUs, but consume less power than HBMs.

Since those chips are all specific to AI data centers, joining the project as a technology partner will bring a significant boost to Samsung's semiconductor sales, given that the project now plans to build gigawatt-scale data center campuses in 16 states in the U.S., creating massive demand for AI chips.

"Samsung is now building a foundry supply chain capable of producing AI-dedicated chips while also securing over 1 billion users across mobile, TV and home appliances," Kim said. "This positions the company as the optimal partner for the future establishment of the Stargate AI ecosystem."

Samsung Electronics Executive Chairman Lee Jae-yong leaves the Seoul High Court in Seocho District, Feb. 3, after the court found him not guilty of his alleged involvement in a controversial merger between Samsung Group affiliates. Yonhap

Strings attached

If Samsung participates in the project as a technology partner or business operator, it is expected to reap lucrative benefits from the chip demand generated by data center construction. However, challenges may arise if the company ends up merely serving as a financial investor without strategic involvement.

Though details of the Feb. 4 talks remain under wraps, industry insiders are already speculating that Samsung may have been approached for financial investments, rather than for a larger role as a technology partner.

Samsung has deep pockets. At the end of last year, the company's cash and cash equivalents stood at 113 trillion won ($77.74 billion). Excluding debt, Samsung currently holds 93 trillion won in readily available liquidity. Its earned surplus also reached 235 trillion won as of the third quarter of last year.

The flags of Samsung, Texas, Korea and the United States fly in front of the Samsung semiconductor chip plant in Taylor, Texas, Jan. 2. EPA-Yonhap

However, there are too many areas where Samsung needs to spend its cash.

Early last year, the company promised to return 50 percent of its free cash flow to shareholders. In November, it also launched a share buyback program worth 10 trillion won.

Since then, the company has been purchasing up to 1 million of its shares every day to cancel shares worth 3 trillion won, and is expected to announce plans on what it will do with the remaining 7 trillion won in the near future.

During its earnings call last month, the company disclosed that its capital expenditure (CAPEX) for 2024 reached a record 53.6 trillion won, with 46.3 trillion won directed solely toward its chipmaking division. Although the company has not finalized its CAPEX for this year, it has indicated that spending in the memory sector will likely remain at least on par with last year.

Samsung posted disappointing earnings last year, allowing its rival SK Hynix to surpass it as Korea's most profitable chipmaker, while its foundry business showed no signs of improvement. Its longtime revenue generators — smartphones and home appliances — also struggled amid the global economic downturn, leaving the company focused on stabilizing and innovating its operations.

Against this backdrop, skepticism surrounding the project's viability is leading to concerns for Samsung.

Critics, including OpenAI's early investor Elon Musk, are questioning whether the project can secure the full $500 billion investment, citing concerns over SoftBank's fundraising capabilities. Additionally, securing land for the proposed massive data center clusters and constructing new facilities could face delays due to supply chain issues and political conflicts.

Partners joining the project are also limiting Samsung's potential role as a technology partner in the project.

Reuters reported on Jan. 21 that Nvidia, Microsoft and Arm will be technology partners in the Stargate project, fueling speculation that Nvidia's GPUs and other advanced AI accelerators will dominate the project, as they do in most data centers worldwide.

OpenAI CEO Sam Altman, left, and SK Group Chairman Chey Tae-won, right, are seen together after their meeting at The Plaza Seoul hotel, Feb. 4. Yonhap

Samsung, however, has struggled to supply its fifth-generation HBM3e chips to Nvidia, a key factor behind the decline in its memory chip profits.

In contrast, rival SK hynix has solidified its position as the world's leading HBM chip manufacturer, emerging as Nvidia's major supplier.

Samsung maintains a strong foothold in the server DRAM market, but this holds less strategic value compared to the high profitability of HBM.

"Unless the company achieves a breakthrough — such as securing a dominant position in next-generation HBM4 — participating in the Stargate project without an assurance of a technology role may end up benefiting SK hynix more than Samsung itself," an industry official said.

Gaining access to Stargate data centers or seeking collaborations with OpenAI as a foundry have also been mentioned as options for Samsung, but the likelihood of both appears slim.

In a report by The Financial Times last month, it said that the Stargate project "will only serve OpenAI once completed," while other reports suggest that OpenAI has selected TSMC to manufacture its first in-house custom AI chip, aimed at reducing dependence on Nvidia.

Despite these challenges, it would be difficult for Samsung to flatly turn down the Stargate invitation.

Stargate is a private project, but it is widely regarded as a flagship initiative of the Donald Trump administration, aimed at securing U.S. leadership in the global AI race while countering China.

When announcing the project at the White House last month, Trump called it a "resounding declaration of confidence in America's potential," tying it directly to Washington's broader strategy of reasserting U.S. economic dominance through aggressive measures.

As part of such a strategy, Trump has already flexed his muscle by signing proclamations imposing 25 percent tariffs on all steel and aluminum imports on Monday. He also hinted that additional tariffs could extend to pharmaceuticals and semiconductors.

U.S. President Donald Trump shows an executive order in the Oval Office of the White House in Washington, Feb. 10. UPI-Yonhap

Joining the project could be an inevitable choice for Samsung to strengthen its bargaining power with the Trump administration, especially as its foundry rival, TSMC, appears to already be taking action.

China Times, a Taiwanese media outlet, said on Tuesday that TSMC held its board meeting at its Arizona facilities to discuss expanding production capabilities in the U.S., as part of the company's efforts to avoid risks from potential U.S. tariffs on Taiwanese chip imports.