NVIDIA to supply 260,000 Blackwell chips to South Korea
What's the story
NVIDIA has announced a deal to supply over 260,000 of its latest artificial intelligence (AI) chips to the South Korean government and some of its largest companies. The list includes tech giant Samsung Electronics. The move comes as part of NVIDIA's global strategy to integrate AI into products and services, a plan that recently helped it become the world's first $5 trillion company.
Strategic move
Plan to become an AI hub
The deal with NVIDIA is a major step in South Korea's plan to become an AI hub in the region. The country's President Lee Jae Myung, who took office on June 4, has been pushing for AI investment as a growth strategy amid uncertain economic conditions due to US tariffs. "Korea can now produce intelligence as a new export that will drive global transformation," said NVIDIA CEO Jensen Huang.
Diplomatic discussions
Meeting at APEC summit
The announcement of the deal came after a meeting between Huang, President Lee, and the heads of Samsung, SK Group, and Hyundai Motor Group. The talks were held on the sidelines of the Asia Pacific Economic Cooperation (APEC) summit in Gyeongju. This further strengthens NVIDIA's relationship with South Korea, a country that is home to many semiconductor and automotive giants.
Implementation plan
Chip usage for AI infrastructure development
The South Korean government plans to use over 50,000 of NVIDIA's latest chips for AI infrastructure development. Meanwhile, Samsung Electronics, SK Group, and Hyundai Motor Group will each use up to 50,000 AI chips in their smart factories involved in semiconductor and vehicle production. Naver, the country's largest internet portal and search engine provider, will purchase 60,000 NVIDIA chips.
Future plans
Expanding computing infrastructure
The South Korean government plans to expand its computing infrastructure by collaborating with internet companies like Naver and Kakao. This will be done through projects such as the National AI Computing Center using NVIDIA's new trove of chips. Hyundai Motor Group is also strengthening its partnership with NVIDIA by building a "supercomputer" for in-vehicle AI, autonomous driving, smart factories, and robotics.