Nvidia, a prominent US semiconductor company, has announced a deal to supply over 260,000 of its advanced artificial intelligence (AI) chips to the South Korean government and major corporations including Samsung, LG, and Hyundai. These chips are intended for use in factories, contributing to the development of technologies ranging from robotics to autonomous vehicles.
Nvidia’s CEO, Jensen Huang, emphasized the potential for South Korea to leverage its manufacturing capabilities to become a leader in AI, following the company’s recent milestone of reaching a $5 trillion valuation. However, he did not specify the financial details of the agreement or the timeline for implementation. During a CEO summit at the Asia Pacific Economic Cooperation (APEC) meeting in Gyeongju, Huang mentioned that the new chips could enable these companies to create “digital twins” of factories worldwide.
This initiative aligns with South Korea’s ambition to establish itself as a regional AI hub, especially under the leadership of President Lee Jae Myung, who aims to prioritize AI investments amidst ongoing U.S. tariffs. The South Korean government plans to establish a centralized computing infrastructure referred to as “sovereign AI,” with over 50,000 Nvidia chips slated for data centers at the National AI Computing Center and facilities operated by local firms such as Kakao and Naver.
The timing of this deal coincides with Nvidia’s challenges stemming from the U.S.-China trade war, which has significantly reduced its market share in China. Despite the region being a critical supply chain partner, concerns persist regarding U.S. sales of AI technology to China, where local companies are increasingly developing competitive products. Notably, Beijing has urged local firms to source from domestic manufacturers, affecting Nvidia’s strategy.
Overall, the arrangement with South Korea marks a significant step for Nvidia in its broader goal to expand AI infrastructure globally while navigating the complexities of international relations and market competition.
Source: https://www.bbc.com/news/articles/cyv862r7l2ro?at_medium=RSS&at_campaign=rss