The US chip giant Nvidia has announced a remarkable deal to supply over 260,000 of its advanced AI chips to the South Korean government and leading companies such as Samsung, LG, and Hyundai. These chips are vital for driving technological advancements across various sectors, including semiconductors, robotics, and autonomous vehicles.
Jensen Huang, Nvidia's CEO, emphasized that this partnership will empower South Korea to produce intelligence as a new export. Although the financial details of the contracts were not disclosed, the move is seen as significant in bolstering South Korea's capabilities in AI and technology.
The announcements were made during a CEO summit at the Asia Pacific Economic Cooperation (APEC) forum, where Huang discussed the implications of these chips in creating digital twins to enhance global factory operations.
This week's activities cap off a busy period for Nvidia, which has become the first company to reach a $5 trillion valuation. Additionally, signs of improving US-China trade relations may allow Nvidia to expand its chip exports to China, which has been a complicated aspect of its business strategy due to political tensions.
As countries like South Korea position themselves to become regional leaders in AI, the importance of robust infrastructure grows. With plans for AI computing centers powered by more than 50,000 Nvidia chips, South Korea aims for self-sufficiency in its AI initiatives, termed sovereign AI. Huang highlighted that South Korea's access to essential resources and manufacturing capabilities makes it an ideal location for expanding AI investments.
Nvidia's growing footprint in international markets is driven by the need for strategic partnerships and innovations, particularly in the face of US tariffs and the competitive landscape in China, where local companies are increasingly developing their own AI solutions. An optimistic outlook was expressed by Huang, as he remains hopeful for collaborative policies that facilitate technology exchange between the US and China.
