Samsung Electronics Co. is significantly increasing its investment in artificial intelligence (AI) for consumer electronics, aiming to leverage its dominant market share in devices ranging from smartphones and TVs to refrigerators and washing machines. This strategic move is designed to solidify Samsung’s position in the rapidly expanding AI landscape.
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Samsung CEO Han Jong-Hee, in an interview at CES in Las Vegas, highlighted the company’s unique position as a leader across multiple consumer electronics categories. The strategy centers around connecting the estimated half-billion devices Samsung sells annually, creating a powerful ecosystem driven by AI. This interconnected approach aims to offset recent setbacks in areas like high-end memory and generative AI, where competitors have gained ground.
In 2024, Samsung’s stock price declined by a third, largely due to challenges in supplying advanced memory chips for AI accelerators, specifically high-bandwidth memory (HBM) for Nvidia Corp. Despite a strong performance in its smartphone division, delays in securing Nvidia’s approval for its HBM chips impacted investor confidence. At CES 2025, Samsung showcased its strengths in smart home technology as a key differentiator.
Samsung’s Smart Home Advantage: Integrated AI Hubs
Unlike competitors such as Apple Inc., Amazon.com Inc., and Alphabet Inc.’s Google, Samsung integrates its home connectivity hubs directly into appliances. This embedded approach offers a distinct advantage, as consumers are already purchasing these devices. Under Han’s leadership, Samsung has been incorporating AI chips into its refrigerators, washing machines, and robotic vacuum cleaners, laying the foundation for a comprehensive smart home ecosystem.
New AI Initiatives: TVs and Personalized Experiences
Samsung announced a new AI initiative for its TVs, positioning them to compete directly with Google’s TV software. This initiative will leverage AI for real-time translation, content analysis, and enhanced audio and video capabilities. Furthermore, Samsung’s Bixby voice assistant will gain the ability to recognize individual household members and tailor experiences accordingly, starting this year.
Leadership, R&D, and Future Growth
Han shares leadership responsibilities with Jun Young-hyun, who will officially assume the co-CEO role in March, overseeing the crucial semiconductor business. Han remains responsible for all other aspects of the vast electronics manufacturer and expressed confidence in Samsung’s ability to revitalize its chip division in the coming year.
AI currently represents the largest portion of Samsung’s research and development spending outside of semiconductors. Han plans to substantially increase this investment in the coming years. While declining to disclose specific figures, he confirmed the company is acquiring graphics cards from Nvidia and Advanced Micro Devices Inc. to bolster several major data centers in Korea.
Samsung’s SmartThings platform, which facilitates connectivity between smartphones, TVs, and other home devices, boasts 370 million users and has experienced approximately 20% annual growth over the past three years. Beyond its current product portfolio, Samsung is focusing on robotics, medical technology, and automotive technologies as key areas for future growth, actively acquiring and investing in relevant startups. Han anticipates Samsung will outperform the broader consumer electronics industry, projected to grow by roughly 3% this year.
