At a Glance
Nvidia is deepening its collaboration with South Korean tech giants and the government to bolster the country’s AI infrastructure. This initiative involves deploying over 260,000 Nvidia GPUs across various sectors, including manufacturing, automotive, and telecommunications. Key partnerships include Samsung, SK Group, Hyundai Motor Group, and Naver, with a focus on building AI factories and developing advanced AI models. Nvidia CEO Jensen Huang’s visit to South Korea marks a significant milestone in the company’s 25-year relationship with the nation.
What to Know
- Nvidia is partnering with Hyundai Motor, Samsung, SK Group, and Naver to expand AI capabilities in South Korea.
- The South Korean government will secure over 260,000 Nvidia GPUs to meet growing AI demands.
- Approximately 50,000 GPUs will support public initiatives, including developing domestic AI foundation models and a national AI data center.
- Samsung plans to build an AI mega-factory in partnership with Nvidia, utilizing over 50,000 Nvidia GPUs and the Omniverse platform.
- Nvidia is collaborating with Samsung, SK Telecom, KT, LG Uplus, and ETRI to co-develop AI-RAN for 6G.
- Samsung, SK Group, and Hyundai Motor Group are each building AI factories with up to 50,000 Nvidia GPUs apiece, while NAVER plans to deploy more than 60,000.
- Nvidia became the first company to be valued at $5 trillion on Wednesday.
- China made up more than a tenth of Nvidia’s revenue last year.
Detailed Recap
On October 31, 2025, Nvidia announced a significant expansion of its AI partnerships with South Korean companies and the government, marking a major step in the country’s AI industrial revolution. Nvidia CEO Jensen Huang visited South Korea for the first time in 15 years to unveil these new plans during the APEC Summit 2025 in Gyeongju. The collaboration aims to boost South Korea’s AI infrastructure and physical AI capabilities, supported by over 260,000 Nvidia GPUs.
The South Korean government, through the Ministry of Science and ICT (MSIT), is investing in sovereign AI infrastructure, allocating over 50,000 of the latest Nvidia GPUs to the National AI Computing Center and Korean cloud service providers such as NHN Cloud, Kakao Corp., and NAVER Cloud. This includes an initial wave of 13,000 Nvidia Blackwell GPUs. The remaining GPUs will be distributed among companies like Samsung, SK, Hyundai Motor Group, and Naver, driving AI-based manufacturing innovation and industry-specific AI model development.
Samsung Electronics is building an AI mega-factory in partnership with Nvidia, integrating AI into every stage of its manufacturing processes for semiconductors, mobile devices, and robotics. This facility will utilize more than 50,000 Nvidia GPUs and the Omniverse platform to create an intelligent network capable of analyzing, predicting, and optimizing production in real time. Samsung and Nvidia, partners for over 25 years, are also collaborating on HBM4, a next-generation memory designed to power future AI applications.
SK Group is constructing an AI factory featuring over 50,000 Nvidia GPUs and Asia’s first industrial AI cloud, which will feature Nvidia RTX PRO 6000 Blackwell Server Edition GPUs for physical AI and robotics workloads. Hyundai Motor Group is collaborating with Nvidia and the Korean government to build an Nvidia AI factory with 50,000 Nvidia Blackwell GPUs, enabling integrated AI model training, validation, and deployment for manufacturing and autonomous driving. NAVER Cloud is expanding its Nvidia AI infrastructure with over 60,000 GPUs for enterprise and physical AI workloads.
Nvidia is also working with Samsung, three Korean telecom operators (SK Telecom, KT, and LG Uplus), and ETRI (Electronics and Telecommunications Research Institute) to co-develop AI-RAN for 6G, according to the Korean Ministry of Science and ICT. AI-RAN combines mobile base stations with AI to boost performance and cut battery use. Nvidia and South Korea’s industry and research institutions will jointly develop next-generation AI-RAN and a global testbed.
According to Nvidia CEO Jensen Huang, “It’s vital that we build the ecosystem, not just the AI infrastructure, of Korea”. He also stated that with the chips, companies would be able to create “digital twins” with other factories around the world. He added that South Korea can “now produce intelligence as a new export”.
These deals form part of Nvidia’s latest effort to expand AI infrastructure globally, to further integrate AI into products and services. Nvidia has been striking international partnerships which helped it become the first company ever to be valued at $5tn (£3.8tn) on Wednesday.
Mini-Timeline
- 25 Years Ago: Nvidia begins building a rich ecosystem with Korea, contributing to the rise of esports and PC-bangs.
- October 30, 2025: Nvidia CEO Jensen Huang meets with Samsung’s Jay Y. Lee and Hyundai’s Chung Euisun in Seoul.
- October 31, 2025: Nvidia announces expanded AI ties with Hyundai, Samsung, SK, and Naver at the APEC Summit in Gyeongju, South Korea.
- October 31, 2025: Nvidia unveils plans to deploy over 260,000 GPUs across South Korea’s sovereign clouds and AI factories.
- This Week: Nvidia becomes the first company to be valued at $5 trillion.
Background Context
Nvidia’s deepened collaboration with South Korea builds upon a 25-year history of partnership and innovation. South Korea has been a significant player in the technology sector, particularly in areas like esports and PC gaming, where Nvidia’s GeForce technology has played a crucial role. To celebrate this milestone, Nvidia hosted a GeForce Gamer Festival in Seoul, showcasing the latest GeForce RTX technology and providing attendees with exclusive hands-on experiences with unreleased games featuring NVIDIA DLSS 4 with Multi-Frame Generation. Games like NCSOFT’s, AION 2 and CINDER CITY, and KRAFTON’s PUBG Ally (an AI co-playable character powered by NVIDIA ACE) were featured. The festival also included esports matches, including a StarCraft match between pro gamers Hong Jin-ho (YellOw) and Lee Yoon-yeol (NaDa), and performances by K-TIGERS and LE SSERAFIM.
The South Korean government’s investment in AI infrastructure aligns with its broader strategy to foster economic growth and innovation across key industries such as automotive, manufacturing, and telecommunications. The deployment of 50,000 GPUs for public initiatives, including the development of domestic AI foundation models and a national AI data center, underscores the government’s commitment to building a strong AI ecosystem.
The partnerships with Samsung, SK Group, Hyundai Motor Group, and Naver reflect the growing importance of AI in various sectors. Samsung’s AI mega-factory, utilizing over 50,000 Nvidia GPUs and the Omniverse platform, aims to revolutionize its manufacturing processes for semiconductors, mobile devices, and robotics. SK Group’s AI factory, featuring Nvidia RTX PRO 6000 Blackwell Server Edition GPUs, will support physical AI and robotics workloads. Hyundai Motor Group’s collaboration with Nvidia will enable integrated AI model training, validation, and deployment for manufacturing and autonomous driving. NAVER Cloud’s expansion of its Nvidia AI infrastructure will cater to enterprise and physical AI workloads.
These initiatives are also taking place against the backdrop of ongoing US-China trade tensions. China made up more than a tenth of Nvidia’s revenue last year. Nvidia CEO Jensen Huang expressed disappointment that Nvidia’s share of the AI business in China has fallen to 0%. Following talks between President Trump and President Xi, there is potential for renewed chip sales to China, with the US government acting as a “referee”. Huang stated that he would like to sell Nvidia’s state-of-the-art Blackwell chips to China, although the decision needed to be made by the US President.
Use-Cases and Sector Impact
Nvidia’s expanded AI ties with South Korean giants signal a profound shift towards AI-driven innovation across multiple sectors. The deployment of over 260,000 GPUs will fuel advancements in manufacturing, automotive, telecommunications, and robotics. Samsung’s AI mega-factory, utilizing over 50,000 Nvidia GPUs and the Omniverse platform, exemplifies this transformation. This facility aims to create an intelligent network capable of analyzing, predicting, and optimizing production in real-time for semiconductors, mobile devices, and robotics. Hyundai Motor Group’s collaboration with Nvidia to build an AI factory with 50,000 Nvidia Blackwell GPUs will enable integrated AI model training, validation, and deployment for manufacturing and autonomous driving. SK Group is also constructing an AI factory featuring over 50,000 Nvidia GPUs, including Asia’s first industrial AI cloud featuring NVIDIA RTX PRO 6000 Blackwell Server Edition GPUs for physical AI and robotics workloads. These AI factories represent a significant investment in physical and agentic AI, promising to enhance efficiency, productivity, and innovation across these key industries.
The telecommunications sector will also see significant advancements through the collaboration on AI-RAN technology. Nvidia is partnering with Samsung, SK Telecom, KT, LG Uplus, and ETRI to co-develop AI-RAN, which combines mobile base stations with AI to boost performance and cut battery use. This collaboration aims to develop next-generation AI-RAN and a global testbed, further solidifying South Korea’s position as a leader in AI-driven telecommunications. Naver Cloud is expanding its NVIDIA AI infrastructure with over 60,000 GPUs for enterprise and physical AI workloads.
Threat Vector & Attack Surface
While the expansion of AI infrastructure in South Korea presents numerous opportunities, it also introduces potential security risks and vulnerabilities. The increased reliance on AI systems across critical industries like manufacturing, automotive, and telecommunications expands the attack surface for malicious actors. The interconnected nature of AI factories and cloud infrastructure could create single points of failure, making them attractive targets for cyberattacks.
The use of AI in autonomous vehicles, for example, raises concerns about potential manipulation of AI models to cause accidents or disrupt transportation systems. Similarly, in manufacturing, compromised AI systems could lead to production errors, quality control issues, or even sabotage. The development of AI-RAN also introduces new security considerations, as vulnerabilities in mobile base stations could be exploited to disrupt communication networks or gain unauthorized access to sensitive data.
Addressing these threats requires a multi-faceted approach, including robust cybersecurity measures, continuous monitoring of AI systems, and the development of resilient AI models that are resistant to adversarial attacks. Collaboration between Nvidia, South Korean companies, and government agencies will be crucial to ensure the security and reliability of AI infrastructure.
Compute, Data, and Cost Curves
The deployment of over 260,000 Nvidia GPUs in South Korea represents a significant investment in compute infrastructure. This massive increase in processing power will enable the development and deployment of more complex AI models, accelerate training times, and improve the performance of AI applications. The cost of acquiring and maintaining this compute infrastructure is substantial, but the potential benefits in terms of increased productivity, innovation, and economic growth are expected to outweigh the costs.
The availability of large datasets is also crucial for the success of AI initiatives. The South Korean government’s investment in a national AI data center will provide access to vast amounts of data for training AI models. This data, combined with the compute power of Nvidia GPUs, will enable the development of cutting-edge AI applications tailored to the specific needs of South Korean industries.
The cost curves associated with AI development and deployment are expected to decline over time as technology improves and economies of scale are realized. Nvidia’s continued innovation in GPU technology and AI software will play a key role in driving down these costs and making AI more accessible to a wider range of organizations.
Nvidia: What Changes, What Doesn’t
Nvidia’s partnerships in South Korea reinforce its position as a dominant player in the AI hardware market. The deals demonstrate Nvidia’s ability to forge strategic alliances with governments and leading corporations to drive AI adoption on a national scale. This approach allows Nvidia to expand its market share, strengthen its ecosystem, and influence the direction of AI development.
What remains unchanged is Nvidia’s focus on innovation and its commitment to providing cutting-edge AI solutions. The company continues to invest heavily in research and development, pushing the boundaries of GPU technology and AI software. Nvidia’s CUDA-X, cuLitho, Nemotron models, Omniverse, Cosmos, and Isaac GR00T are all examples of its ongoing efforts to provide comprehensive AI platforms for various industries.
However, Nvidia faces challenges in navigating the complex geopolitical landscape, particularly the trade tensions between the US and China. The US imposes export controls on sales to China of Nvidia’s most-advanced AI chips. While Nvidia hopes to find a way to sell its state-of-the-art Blackwell chips to China, the decision ultimately rests with the US government. This situation highlights the need for Nvidia to diversify its markets and build strong relationships with countries like South Korea.
Earnings Highlights & Guidance
While the specific financial terms of the South Korean deals were not disclosed , they are expected to have a positive impact on Nvidia’s future earnings. The deployment of over 260,000 GPUs will generate significant revenue for Nvidia, and the partnerships with Samsung, Hyundai, SK, and Naver will create long-term opportunities for collaboration and growth.
Nvidia’s recent performance, including becoming the first company to be valued at $5 trillion , underscores its strong position in the AI market. The company’s earnings have been driven by strong demand for its GPUs in data centers, cloud computing, and AI applications. Nvidia’s guidance for future earnings is likely to reflect the positive momentum from its South Korean partnerships and its continued leadership in AI technology.
Segment Performance & KPIs
The South Korean deals are expected to boost Nvidia’s performance across multiple segments, including data center, automotive, and professional visualization. The deployment of GPUs in AI factories will drive growth in the data center segment, while the collaboration with Hyundai will strengthen Nvidia’s position in the automotive market. The use of Nvidia technology in robotics and manufacturing will also contribute to growth in the professional visualization segment.
Key performance indicators (KPIs) for Nvidia will include revenue growth in these segments, market share gains, and customer satisfaction. The company will also be closely monitoring the adoption of its AI platforms and the success of its partnerships in driving innovation across various industries.
FAQ
What is the significance of Nvidia’s partnership with South Korea?
The partnership signifies a major expansion of Nvidia’s AI infrastructure globally, with South Korea becoming a key hub for AI innovation. It involves deploying over 260,000 Nvidia GPUs to boost AI capabilities across various sectors, including manufacturing, automotive, telecommunications, and robotics.
Which companies are involved in this partnership?
The key companies involved are Samsung Electronics, Hyundai Motor Group, SK Group, and Naver, along with the South Korean government.
What is an AI factory, and how does Nvidia contribute to it?
An AI factory is a facility that integrates AI into every stage of its manufacturing process to optimize production in real-time. Nvidia contributes by providing its GPUs, AI software platforms like CUDA-X and Omniverse, and expertise in AI model development and deployment. For example, Samsung’s AI mega-factory will use over 50,000 Nvidia GPUs and the Omniverse platform to analyze, predict, and optimize production of semiconductors, mobile devices, and robotics.
What is AI-RAN, and what role does Nvidia play in its development?
AI-RAN combines mobile base stations with AI to boost performance and cut battery use. Nvidia is collaborating with Samsung, SK Telecom, KT, LG Uplus, and ETRI to co-develop next-generation AI-RAN technology and a global testbed.
How does the US-China trade war affect Nvidia’s business?
The US imposes export controls on sales to China of Nvidia’s most-advanced AI chips. This has led to a significant decline in Nvidia’s market share in China. Nvidia hopes to find a way to sell its state-of-the-art Blackwell chips to China, but the decision ultimately rests with the US government.
What are the potential security risks associated with the expansion of AI infrastructure?
The increased reliance on AI systems expands the attack surface for malicious actors. Vulnerabilities in AI systems could be exploited to disrupt critical infrastructure, compromise sensitive data, or cause physical harm. Robust cybersecurity measures and continuous monitoring are essential to mitigate these risks.
What is the role of the South Korean government in this partnership?
The South Korean government is investing in sovereign AI infrastructure with over 50,000 Nvidia GPUs to be deployed across the National AI Computing Center and Korean cloud service and IT providers NHN Cloud, Kakao Corp. and NAVER Cloud. The government is also supporting the development of domestic AI foundation models and a national AI data center.
Key Takeaways
- Nvidia’s strategic partnerships in South Korea solidify its dominance in the AI hardware market and expand its global footprint.
- The deployment of over 260,000 Nvidia GPUs will drive innovation across various sectors in South Korea, including manufacturing, automotive, telecommunications, and robotics.
- Organizations should assess their AI infrastructure needs and explore opportunities to leverage Nvidia’s technology and expertise to accelerate their AI initiatives.
- Policymakers should prioritize cybersecurity measures and promote collaboration between industry and government to ensure the safe and responsible development and deployment of AI.
Sources
- techcrunch.com
- investor.nvidia.com
- blogs.nvidia.com
- bloomberg.com
- bbc.com
