NVIDIA is advancing a landmark AI infrastructure deployment plan in South Korea, supplying over 260,000 AI chips to the country's largest technology companies. Under the agreement, the South Korean government will develop its 'Sovereign AI,' Samsung will establish an 'AI Factory,' Hyundai Motor will leverage the new chips to advance autonomous driving technology, and SK Group will collaborate with NVIDIA to create Asia’s first 'Industrial AI Cloud.'
$NVIDIA (NVDA.US)$ A landmark AI infrastructure deployment plan is currently underway in South Korea, providing more than 260,000 AI chips to the country's largest technology companies.
According to media reports, NVIDIA has reached agreements with South Korea’s Ministry of Science and ICT as well as Samsung Electronics, Hyundai Motor Group, and SK Group to provide over 260,000 AI chips to kickstart South Korea's AI projects. NVIDIA did not disclose the financial terms of the deal.
Jensen Huang, CEO of NVIDIA, attended the APEC CEO Summit held in South Korea on Friday. This visit is part of his ongoing global efforts to promote the application of AI computing, aiming to further boost demand for the company’s products.
Samsung, Hyundai, and SK Group each deploy over 50,000 chips.
Under the agreement, the South Korean government will build what is referred to as “Sovereign AI” – government-controlled computing infrastructure. In the future, more than 50,000 of NVIDIA’s latest AI accelerators will be deployed in data centers, including the National AI Computing Center as well as facilities operated by Kakao, Naver, and NHN Cloud.
This scale of deployment reflects South Korea's strategic ambitions in the AI field. By establishing independently controlled computing infrastructure, the South Korean government seeks to secure a favorable position in global AI competition while providing robust technical support to domestic technology companies.
At the corporate level, South Korea’s tech giants have also formulated ambitious plans.
As one of the world’s largest semiconductor manufacturers, Samsung Electronics will construct an “AI factory” equipped with over 50,000 NVIDIA chips. Meanwhile, Hyundai Motor Group has committed to purchasing a similar number of processors based on NVIDIA’s Blackwell architecture to develop the company’s AI models and advance its progress in smart manufacturing and autonomous driving.
Asia’s First 'Industrial AI Cloud'
In its collaboration with SK Group, NVIDIA's focus is more on industrial application fields, planning to create a groundbreaking project.
SK Group, which includes SK Telecom and SK Hynix, is deploying a series of NVIDIA RTX Pro 6000 Blackwell server chips.
NVIDIA stated that this move aims to build Asia's first 'Industrial AI Cloud.' This facility will focus on robotics and other applications of AI in the physical world, marking a further penetration of AI technology from the cloud into tangible industrial scenarios.
Samsung Seeks to Supply NVIDIA with HBM4 Chips
Notably, NVIDIA’s collaboration with South Korean giants is not one-sided.
Samsung Electronics announced on Friday that it is in 'close discussions' to supply NVIDIA with its next-generation high-bandwidth memory (HBM) chip, HBM4.
This development highlights the mutually beneficial relationship between the two parties.
In the race for AI chips, Samsung is not only a major customer of NVIDIA’s chips but is also actively striving to become a key supplier, seeking to catch up with competitors in the highly competitive high-performance memory chip market. This further underscores South Korea's pivotal role in the global semiconductor supply chain.
USD 500 Billion Robust Revenue Forecast
The AI boom has driven NVIDIA’s sales and market capitalization to soar over the past two years. Earlier this week, NVIDIA became the first company to surpass a market capitalization of USD 5 trillion.
On October 28, Jensen Huang, CEO of NVIDIA, revealed at the GTC conference that the company has 'visibility' into achieving cumulative data center business revenue of $500 billion between 2025 and 2026. This revenue projection will encompass products based on its Blackwell and next-generation Rubin architectures.
In response, Goldman Sachs commented that although their forecast for NVIDIA’s fiscal year 2026 is already about 7% higher than the market consensus, based on the latest management commentary, they believe there is still a “tendency for further upward revision” to their forecast figures. The improved forward-looking revenue visibility is an “incrementally positive factor” for NVIDIA’s stock price, reaffirming their “Buy” rating.
Editor /rice
