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 Samsung, LG, and Hyundai. The companies will all deploy the AI chips in factories to make everything from semiconductors and robots to autonomous vehicles, positioning South Korea to produce intelligence as a new export, as stated by chief executive Jensen Huang. The details regarding the value of the South Korean deals were not disclosed.
This announcement follows a landmark week for Nvidia as it became the first company to be valued at $5 trillion. Additionally, there are signs of a possible improvement in US-China trade relations, which could allow for increased exports of Nvidia's chips to China in the future.
During a CEO summit at the Asia Pacific Economic Cooperation (APEC) in Gyeongju, Huang noted that these chips would empower companies to develop digital twins with factories around the world. This significant partnership aligns with Nvidia's objective to globalize its AI infrastructure and integrate AI more deeply into various products and services.
The new South Korean agreements arrive as Nvidia navigates complexities stemming from the China-US trade conflict. With China constituting a substantial portion of Nvidia’s revenue previously, the ongoing restrictions have impacted its market share, dropping from 95% to 0% in AI business there, according to Huang. However, optimism remains as high-level talks continue between the US and Chinese governments.
South Korea, home to major semiconductor firms and vehicle manufacturers, is keen on establishing itself as a regional AI hub. Nvidia's infrastructure support will enable the South Korean government, under President Lee Jae Myung, to develop sovereign AI capabilities, controlling their own computing infrastructure. Over 50,000 Nvidia chips are designated for the National AI Computing Center and various facilities operated by prominent South Korean companies such as Kakao and Naver.
Nvidia relies heavily on manufacturers across the Asia Pacific for its production needs. Its commitment to collaborating with local industry players underscores its strategy to fortify the supply chains vital for chip production.
In light of recent global financial pressures, Nvidia continues to solidify its market position through various partnerships, including with the US Department of Energy and various multinational corporations, aiming to reassure investors about returns on AI investments. Amid optimism surrounding potential China sales, further discussions between US and Chinese leaders could enhance Nvidia's standing in the global market.
This announcement follows a landmark week for Nvidia as it became the first company to be valued at $5 trillion. Additionally, there are signs of a possible improvement in US-China trade relations, which could allow for increased exports of Nvidia's chips to China in the future.
During a CEO summit at the Asia Pacific Economic Cooperation (APEC) in Gyeongju, Huang noted that these chips would empower companies to develop digital twins with factories around the world. This significant partnership aligns with Nvidia's objective to globalize its AI infrastructure and integrate AI more deeply into various products and services.
The new South Korean agreements arrive as Nvidia navigates complexities stemming from the China-US trade conflict. With China constituting a substantial portion of Nvidia’s revenue previously, the ongoing restrictions have impacted its market share, dropping from 95% to 0% in AI business there, according to Huang. However, optimism remains as high-level talks continue between the US and Chinese governments.
South Korea, home to major semiconductor firms and vehicle manufacturers, is keen on establishing itself as a regional AI hub. Nvidia's infrastructure support will enable the South Korean government, under President Lee Jae Myung, to develop sovereign AI capabilities, controlling their own computing infrastructure. Over 50,000 Nvidia chips are designated for the National AI Computing Center and various facilities operated by prominent South Korean companies such as Kakao and Naver.
Nvidia relies heavily on manufacturers across the Asia Pacific for its production needs. Its commitment to collaborating with local industry players underscores its strategy to fortify the supply chains vital for chip production.
In light of recent global financial pressures, Nvidia continues to solidify its market position through various partnerships, including with the US Department of Energy and various multinational corporations, aiming to reassure investors about returns on AI investments. Amid optimism surrounding potential China sales, further discussions between US and Chinese leaders could enhance Nvidia's standing in the global market.
