Nvidia is significantly expanding its artificial intelligence (AI) footprint in Asia through a series of major deals with South Korea. The US chip giant will supply over 260,000 advanced AI chips to the South Korean government and leading companies like Samsung, LG, and Hyundai. These chips will be deployed across various industries, from semiconductor manufacturing to autonomous vehicles, positioning South Korea as a key player in the global AI landscape and enabling it to "produce intelligence as a new export."
Key Takeaways
Nvidia to supply over 260,000 advanced AI chips to South Korea.
Deals involve the South Korean government, Samsung, LG, and Hyundai.
Chips will power AI infrastructure for semiconductors, robotics, and autonomous vehicles.
South Korea aims to become a regional AI hub with "sovereign AI" capabilities.
Partnership underscores Nvidia's global expansion amidst US-China trade tensions.
South Korea's AI Ambitions
South Korea, already a powerhouse in semiconductors and automotive manufacturing, is set to become a regional AI hub. The government plans to build its own controlled AI computing infrastructure, termed "sovereign AI." This initiative will see over 50,000 Nvidia chips powering data centres at the National AI Computing Center and facilities owned by major South Korean firms like Kakao and Naver. The partnership aims to integrate AI deeply into products and services, enabling companies to create "digital twins" of factories worldwide.
Strategic Partnerships and Chip Deployment
The comprehensive agreement involves substantial chip allocations. The South Korean government will utilise approximately 50,000 Nvidia GPUs for its national AI cloud computing centre. Samsung and SK Hynix will each receive 50,000 GPUs to enhance their semiconductor manufacturing processes. Hyundai Motor Group will collaborate with Nvidia on AI for self-driving cars, smart factories, and robotics, utilising another 50,000 GPUs. NAVER Cloud is set to deploy over 60,000 GPUs for its AI infrastructure, focusing on industry-specific models.
Beyond Industrial AI
South Korea's commitment extends to foundational AI research and development. The Ministry of Science and ICT is leading a Sovereign AI Foundation Models project, utilising Nvidia's NeMo software and Nemotron datasets to develop Korean language models with advanced reasoning and speech capabilities. Furthermore, collaborations are underway to explore quantum computing and next-generation AI-RAN and 6G infrastructure, aiming to reduce energy costs and enhance battery life for AI-powered systems.
Nvidia's Global Strategy and Market Dynamics
These significant deals in South Korea cap a remarkable period for Nvidia, which recently became the first company valued at $5 trillion. The expansion into Asia comes as Nvidia navigates the complexities of the US-China trade war. While US export controls have severely impacted its AI business in China, Nvidia's CEO Jensen Huang expressed a desire to resume sales there, highlighting the mutual benefits of American technology in the Chinese market. The company continues to secure international partnerships to reassure investors about AI investment returns.
Supporting Talent and Innovation
Nvidia is also bolstering its support for local innovation and talent development. The company is expanding its Inception program for startups in Korea, providing access to accelerated computing infrastructure. A new Center of Excellence will assist startups in building physical AI applications, while the Nvidia Deep Learning Institute will offer upskilling programs to train South Korea's future AI workforce, ensuring the nation maintains its competitive edge in the rapidly evolving AI landscape.