Nvidia, the US chip giant, has announced significant artificial intelligence agreements with South Korean entities, including the government and corporations Samsung, LG, and Hyundai. The deals involve supplying more than 260,000 of Nvidia’s most advanced AI chips, which will be deployed in factories to enhance production of semiconductors, robots, autonomous vehicles, and other technologies. This move was revealed by CEO Jensen Huang at a CEO summit during the Asia Pacific Economic Cooperation (APEC) meetings in Gyeongju, South Korea, marking a key step in Nvidia’s global AI infrastructure expansion.
The announcement caps a remarkable week for Nvidia, which on Wednesday became the first company to reach a $5 trillion market valuation. Huang emphasized that these partnerships enable South Korea to “produce intelligence as a new export,” though the financial terms of the deals were not disclosed. The chips will facilitate the creation of “digital twins” – virtual replicas of physical factories – allowing for improved efficiency and innovation in manufacturing processes across global supply chains.
South Korea is positioning itself as a regional AI hub, leveraging its existing strengths in semiconductors and automotive industries. The country’s government plans to use over 50,000 Nvidia chips in data centers at the National AI Computing Center and facilities operated by companies like Kakao and Naver, under a “sovereign AI” framework where the infrastructure is nationally controlled. This initiative aligns with President Lee Jae Myung’s commitment to prioritize AI investment amid global trade tensions.
Nvidia’s expansion is part of a broader strategy to deepen its international partnerships, which have been instrumental in its valuation surge. Recent deals include collaborations with the US Department of Energy, Nokia, Uber, and Stellantis, aimed at demonstrating the tangible returns on AI investments. These moves have reassured investors, contributing to a boost in Nvidia’s share price, alongside optimism about potential eased restrictions on chip sales to China.
The China-US trade war remains a critical backdrop, as Nvidia grapples with lost market share in China, which previously accounted for over 10% of its revenue. Huang expressed disappointment that Nvidia’s share in China’s AI business has dropped from 95% to nearly 0% due to US export controls. However, recent talks between US and Chinese leaders have raised hopes for renewed access, with Huang stating that selling advanced chips like the Blackwell series to China would benefit both nations and uphold American technology as the global standard.
Analysts note that US restrictions have spurred innovation in China, with companies like Huawei and Alibaba developing rival chips. Beijing has reportedly encouraged local firms to source from domestic manufacturers, further complicating Nvidia’s position. Despite this, Huang respects China’s capabilities and hopes for policy changes that could reopen the market, emphasizing the mutual benefits of technological exchange.
Looking ahead, Nvidia’s deals in South Korea and elsewhere underscore the accelerating integration of AI into global economies. The company’s reliance on Asian supply chains, including manufacturers like Samsung and TSMC, highlights the interconnected nature of the tech industry. As AI becomes increasingly central to industrial and military applications, these partnerships will likely influence geopolitical dynamics and competitive landscapes.
In conclusion, Nvidia’s bumper AI deals with Asian tech giants not only reinforce its market leadership but also signal a pivotal moment in the race for AI supremacy. With South Korea emerging as a key player, the outcomes of these collaborations could shape future innovation and trade policies, driving the next wave of technological advancement.