Samsung profit is up 783% on AI memory chip demand

Samsung Electronics, a South Korean technology company, reported its third-quarter results on Thursday, with a new investment and a new partnership in AI. Operating profit was 107.44 trillion won, which is 783.11% more than one year before and near the 107.66 trillion won that analysts expected. Demand for advanced memory chips used in artificial intelligence (AI) continued to increase.

What Samsung did

Samsung Electronics and five affiliates announced an investment of $1 billion in Helix Digital Infrastructure. KKR, an investment firm, backs Helix. Samsung Electronics pays $500 million and the affiliates pay the remaining quantity.

Samsung also started a partnership with Mistral AI, a French AI startup. They will use AI in chip design and in how they make chips. Samsung led the Series D funding round of Mistral.

The numbers

Revenue was 195.25 trillion won, 126.88% more than one year before. Analysts expected more revenue, by a small quantity.

What is not known

The quantity of the Mistral round is not known. The terms of the partnership and the work of Helix are not known.

Insight: Samsung backs the AI firms around its chip sales

Samsung profit is up 783.11% on AI memory chip demand. In the same quarter it put $500 million into Helix, led the Mistral funding round and became its partner. This reads as a chip supplier that uses its profit to back AI firms, and gains as seller and investor. Look for more such deals. A supplier can also be an investor and a partner.