Nvidia to Deliver Over 260,000 Blackwell AI Chips to South Korea
On October 31, 2023, Nvidia, a leading U.S. semiconductor company, announced its plans to deliver over 260,000 AI chips to South Korea. This substantial shipment is intended for the South Korean government and major corporations, including Samsung Electronics, SK Group, and Hyundai Motor Group.
Nvidia’s Role in South Korea’s AI Expansion
This initiative comes as South Korea aims to establish itself as a regional hub for artificial intelligence. Since taking office on June 4, President Lee Jae Myung emphasized the importance of AI investment for economic growth, especially amid uncertainties related to U.S. tariffs.
Global Impact and Strategic Partnerships
Nvidia’s CEO, Jensen Huang, stated that Korea’s advanced manufacturing could extend to producing AI capabilities, positioning it as a new global export. The announcement of the AI chip deal followed discussions at the Asia Pacific Economic Cooperation summit in Gyeongju, where Huang met with leaders from South Korea’s top industries.
- Beyond the government, Samsung, SK Group, and Hyundai will use up to 50,000 AI chips each for smart factory projects.
- Naver, South Korea’s largest online platform, plans to acquire 60,000 Nvidia chips for enhanced services.
The implementation will support the South Korean government’s initiative to improve AI infrastructure. The focus will include building the National AI Computing Center in collaboration with leading internet companies like Naver and Kakao.
Nvidia’s Challenges and Market Strategies
As Nvidia expands its influence in South Korea, it faces challenges from the ongoing Sino-U.S. trade tensions. Restrictions on chip exports to China have impacted Nvidia’s market share in that region. In response, the company aims to identify new applications for its technology, especially in sectors such as manufacturing and retail.
Hyundai Motor Group also announced plans to deepen its collaboration with Nvidia by developing a supercomputer for in-vehicle AI and autonomous driving applications. This partnership exemplifies Nvidia’s commitment to fostering innovative technologies in vital industries.
The strategic move to supply over 260,000 AI chips represents Nvidia’s broader goal of leading in the AI space, reinforcing its position at the forefront of global technological advancement.
