Nvidia Expands AI Influence with Major Contracts in South Korea

Sun Nov 30 2025 23:45:40 GMT+0200 (Eastern European Standard Time)

Nvidia makes headlines by securing significant deals with South Korea’s leading tech giants and government, providing advanced AI chips as the company achieves a $5 trillion valuation.

Nvidia has signed a deal to supply over 260,000 advanced AI chips to key South Korean companies, including Samsung and LG. These chips will bolster South Korea's aspirations to become a regional AI powerhouse. As Nvidia reaches a historic $5 trillion valuation, it navigates challenges posed by US-China trade tensions while aiming to expand its AI presence globally.

US chip giant Nvidia will supply more than 260,000 of its most advanced artificial intelligence (AI) chips to South Korea's government, as well as major companies like Samsung, LG, and Hyundai. These companies aim to implement the AI chips in factories for use in various applications including semiconductors, robotics, and autonomous vehicles. The deal represents a significant milestone for South Korea, enabling the nation to enhance its position in the global tech market by producing 'intelligence' as a new export, as highlighted by CEO Jensen Huang.

Huang did not disclose the financial details surrounding the South Korean contracts. This announcement comes shortly after Nvidia registered as the first company to be valued at $5 trillion, marking a vibrant week for the tech titan amid improving US-China trade relations, which may allow for a potential increase in chip exports to China.

Speaking during a CEO summit alongside the Asia Pacific Economic Cooperation (Apec) meetings, Huang stated that the newly supplied chips will facilitate the creation of digital twins to optimize operations across factories globally. The latest deals are also part of Nvidia's broader strategy to enhance AI infrastructure worldwide and integrate AI more significantly into various products and services.

The partnerships with South Korea arrive as Nvidia faces the hurdles of the ongoing China-US trade conflict, wherein more than 10% of its revenue came from China last year. Huang expressed disappointment over losing a significant share of the AI market in China, noting that their share plummeted from 95% to 0% amidst these geopolitical tensions.

On the flipside, sales in China remain uncertain while discussions between Chinese and US leaders continue. Huang expressed hope that US policies will adapt to facilitate the return of Nvidia's chips to the Chinese market, underscoring the mutual benefits of cross-national technology exchange.

South Korea is actively positioning itself as an AI hub, with plans to build a controlled computing infrastructure, referred to as sovereign AI, powered by Nvidia chips. The enthusiasm surrounding these partnerships signifies Korea's intent to lead the charge towards AI advancement in the region.

Analysts highlight that Nvidia’s expansion efforts coincide with solid global partnerships and innovative AI investments aimed at returning profits, as seen with its deals with the US Department of Energy and other firms.