Nvidia Boosts Global AI Presence with Major South Korea Partnerships

The US-based semiconductor giant Nvidia is significantly enhancing its artificial intelligence (AI) capabilities in South Korea. In a major move, the company will supply over 260,000 of its advanced AI chips to key local players, including the South Korean government and prominent firms such as Samsung, LG, and Hyundai.

Nvidia’s Impact on South Korea’s AI Landscape

This strategic partnership will enable these companies to utilize Nvidia’s chips in a wide range of applications, including the production of semiconductors, robotics, and autonomous vehicles. Nvidia’s CEO, Jensen Huang, emphasized that this development allows South Korea to become a significant exporter of intelligence.

Recent Achievements and Developments

• Nvidia achieved a historic valuation of $5 trillion, becoming the first company to do so.
• Signs of improved US-China trade relations might allow Nvidia to resume chip exports to China.

While speaking at a CEO summit linked to the Asia Pacific Economic Cooperation (APEC) in Gyeongju, Huang noted the potential for creating “digital twins,” allowing factories to collaborate globally using AI technology. This initiative is part of Nvidia’s broader strategy to enhance AI infrastructure around the world.

AI Sovereignty in South Korea

As the South Korean government aims to establish a “sovereign AI” framework, the partnership will focus on building a controlled computing infrastructure. Notably, over 50,000 Nvidia chips will support the National AI Computing Center and various facilities operated by companies such as Kakao and Naver.

Response to the China-US Trade Landscape

The recent Nvidia developments occur amid ongoing tensions in US-China trade relations, which have impacted the company’s market dynamics. Last year, China accounted for over 10% of Nvidia’s revenue. Huang expressed disappointment over the loss of the company’s 95% market share in China, now reduced to zero.

Despite these challenges, Huang remains optimistic about future market opportunities and aims to negotiate sales of Nvidia’s advanced Blackwell chips to China. However, sales decisions will ultimately depend on US regulatory approvals.

South Korea’s Aspirations

• The South Korean government plans to prioritize AI investment under President Lee Jae Myung.
• Local firms are positioned well to develop AI technologies due to the nation’s robust manufacturing capabilities and energy resources.

Huang highlighted that South Korea’s existing semiconductor and automotive industries make it an ideal location for expanding AI initiatives. He envisions a collaborative future where American technology sets a global standard in AI.

Global AI Partnerships

This week, Nvidia’s share price rose significantly, bolstered by new partnerships, including collaborations with the US Department of Energy, Nokia, and Uber. These developments contribute to investor confidence in the potential returns from AI-focused investments.

As Nvidia moves forward, its strategic alliances and technological advancements will play a crucial role in shaping the future of AI, both in South Korea and globally.