Nvidia Forges Historic AI Partnership with South Korea, Deploying 260,000 GPUs Across Major Industries

Reviewed byNidhi Govil

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Nvidia CEO Jensen Huang announces a massive AI infrastructure expansion in South Korea, with over 260,000 GPUs to be deployed across government and private sector initiatives. Major Korean companies including Samsung, Hyundai, SK Group, and Naver are partnering to build AI factories and advance manufacturing, autonomous vehicles, and telecommunications.

Nvidia's Strategic Expansion into South Korea

Nvidia CEO Jensen Huang made his first visit to South Korea in fifteen years this week, announcing a groundbreaking partnership that will see the deployment of over 260,000 GPUs across the country's AI infrastructure

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. The announcement, made during the APEC Summit 2025 in Gyeongju, represents one of the largest national investments in artificial intelligence infrastructure to date

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Source: NVIDIA Blog

Source: NVIDIA Blog

The comprehensive initiative involves both public and private sector deployments, with approximately 50,000 GPUs designated for government initiatives including the development of domestic AI foundation models and a national AI data center

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. The remaining 200,000+ GPUs will be distributed among major Korean corporations to drive AI-based manufacturing innovation and industry-specific model development.

Source: Market Screener

Source: Market Screener

Major Corporate Partnerships and AI Factories

Samsung Electronics is spearheading the industrial transformation with plans to build an AI Megafactory in partnership with Nvidia

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. The facility will utilize more than 50,000 Nvidia GPUs and the Omniverse platform to create an intelligent manufacturing network capable of real-time production analysis, prediction, and optimization across semiconductors, mobile devices, and robotics.

Hyundai Motor Group is entering a deepened collaboration phase with Nvidia, focusing on autonomous mobility, smart factories, and robotics

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. The partnership will deploy 50,000 Nvidia Blackwell GPUs for integrated AI model training and validation, with plans to establish AI research centers throughout South Korea. This collaboration represents approximately $3 billion in investment to advance the physical AI landscape in Korea.

SK Group, parent company of SK Hynix, is partnering with Nvidia to build Asia's first enterprise-led manufacturing AI cloud

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. The initiative will leverage Nvidia's simulation and digital twin platforms while providing access to government institutions, public organizations, and domestic startups.

Telecommunications and Next-Generation Networks

The partnership extends into telecommunications infrastructure, with Nvidia collaborating with Samsung and three major Korean telecom operatorsβ€”SK Telecom, KT, and LG Uplusβ€”along with the Electronics and Telecommunications Research Institute (ETRI) to co-develop AI-RAN technology

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. AI-RAN combines mobile base stations with artificial intelligence to enhance performance while reducing battery consumption, positioning South Korea at the forefront of 6G network development.

Naver Cloud, the cloud division of Korean search engine Naver, is developing a next-generation "Physical AI" platform designed to bridge the physical and digital worlds

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. The company plans to deploy over 60,000 GPUs across key industries including semiconductors, shipbuilding, energy, and biotechnology.

Geopolitical Context and Market Implications

The South Korean expansion comes as Nvidia navigates the complex landscape of US-China trade tensions

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. China previously represented more than a tenth of Nvidia's revenue, but recent trade restrictions have reduced the company's AI market share in China to virtually zero. The Korean partnership provides Nvidia with a strategic alternative in the Asia-Pacific region while supporting South Korea's ambition to become one of the top three global AI powerhouses.

President Trump's recent discussions with Chinese President Xi Jinping included conversations about chip sales to China, with Trump indicating that China will engage in talks with Nvidia about purchasing chips, though not the company's latest Blackwell AI processors

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Source: NVIDIA Newsroom

Source: NVIDIA Newsroom

Economic Impact and Future Outlook

Nvidia's stock price received a significant boost following the announcement of these partnerships, contributing to the company's historic achievement of becoming the first $5 trillion company

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. The milestone underscores the transformative impact of the AI revolution, which many experts compare to the technological shift initiated by the introduction of the iPhone.

The Korean initiative represents more than just GPU deploymentβ€”it signifies a comprehensive rewiring of the nation's industrial infrastructure for artificial intelligence

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. From sovereign clouds to quantum laboratories and autonomous factories, South Korea is positioning itself as a leader in the next generation of intelligent systems and AI-powered economic growth.

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