Nvidia's Game-Changing AI Moves with South Korea's Tech Giants

Sat Nov 01 2025 03:37:07 GMT+0200 (Eastern European Standard Time)

Nvidia secures major deals to supply AI chips to South Korea's top companies, marking a significant step in the expansion of AI technology in the region.

Nvidia is set to provide over 260,000 advanced AI chips to South Korea, partnering with major local companies like Samsung, LG, and Hyundai. This move will enhance AI capabilities in various industries, from robotics to autonomous vehicles. As Nvidia becomes the first company valued at $5 trillion, it simultaneously tackles challenges posed by the US-China trade tensions. Jensen Huang, Nvidia's CEO, sees South Korea as a strategic hub for AI development, promoting sovereign AI initiatives and striving for renewed access to the Chinese market.

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 corporations like Samsung, LG, and Hyundai.

The companies will deploy these AI chips in factories aimed at creating products ranging from semiconductors to autonomous vehicles. Nvidia's chief executive, Jensen Huang, remarked that South Korea can now produce intelligence as a new export.

While Huang did not disclose the financial value of the agreements, they follow a week that witnessed Nvidia becoming the first company ever valued at $5 trillion. Amidst this announcement, Huang noted a warming in US-China trade relations, which could open doors for exporting more Nvidia chips to China.

At a CEO summit during the Asia-Pacific Economic Cooperation (APEC) meeting in Gyeongju, Huang described how the AI chips would facilitate the creation of digital twins in factories around the world, enhancing AI's integration into products and services.

The ties with South Korea come at a critical juncture, as Nvidia grapples with the complications arising from the US-China trade war. Previously, China accounted for over 10% of Nvidia's revenue, but trade restrictions have left it with no market share in China.

We used to have 95% share of the AI business in China. Now we're at 0% share. And I'm disappointed by that, Huang stated, expressing hope for future talks on chip sales to China.

President of South Korea, Lee Jae-myung, has vowed to prioritize AI investment in the wake of challenges posed by US tariffs. The collaboration with Nvidia is intended to bolster South Korea's infrastructure, promoting a sovereign AI vision where the government will control substantial computing resources across the nation.", "p>

More than 50,000 Nvidia chips will power data centers at the National AI Computing Center and local companies like Kakao and Naver.

Nvidia relies heavily on its partnerships with semiconductor manufacturers like Samsung and TSMC, with the latter being essential for producing its flagship AI chips. As geopolitical tensions continue to complicate access to the Chinese market, analysts expect that both the US and China may realize the mutual benefits of American technology and Chinese manufacturing capability.