Upstage in talks with AMD to acquire 10,000 MI355 chips for South Korea AI infrastructure

Korean AI startup Upstage is negotiating with AMD to purchase 10,000 MI355 AI accelerators, marking a strategic move to diversify beyond Nvidia chips. CEO Sung Kim met with AMD's Lisa Su in Seoul to discuss bringing large-scale AI compute infrastructure to South Korea, as local firms seek broader hardware options for domestic AI projects.

Upstage Pursues Major AMD Chip Deal to Expand AI Infrastructure

Korean AI startup Upstage is in active discussions with Advanced Micro Devices Inc. to purchase 10,000 AMD chips, specifically the latest MI355 AI accelerators, as part of a strategic effort to diversify hardware suppliers and strengthen South Korea's AI compute infrastructure

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. The potential procurement represents a significant expansion of AI chips deployment in the country and signals growing demand for alternatives to dominant market players.

Source: Analytics Insight

Source: Analytics Insight

High-Level Discussions Between Industry Leaders

Upstage Chief Executive Officer Sung Kim revealed that he met with AMD CEO Lisa Su in Seoul last week to discuss the chip acquisition. The MI355 AI accelerators are built specifically for demanding AI workloads, making them suitable for the intensive computational requirements of AI model development

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. Kim emphasized the company's strategic rationale during a Bloomberg Television interview on Monday, stating, "We have a lot of Nvidia chips in Korea, but we want to diversify to other chips, including AMD's"

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.

Source: Bloomberg

Source: Bloomberg

Strategic Move Toward Hardware Diversification

The proposed 10,000 AMD chips order reflects a broader trend among Korean AI firms seeking to secure more hardware options for domestic projects

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. By expanding beyond Nvidia, Upstage aims to build a more resilient supplier base as demand for AI infrastructure continues to rise. This diversification strategy could prove critical for maintaining operational flexibility and avoiding supply chain dependencies in an increasingly competitive AI hardware market.

Implications for South Korea AI Push and Market Dynamics

The deal would provide Upstage with substantial added capacity for AI model development while simultaneously offering AMD a valuable opportunity to expand its position in South Korea's fast-growing AI hardware market

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. For the chipmaker, securing a major order in South Korea could validate its MI355 accelerators as viable alternatives for enterprise AI workloads and help challenge Nvidia's market dominance in the region. The procurement discussions underscore how AI startups are actively seeking to bring large-scale compute capabilities into their home markets, potentially reducing reliance on foreign infrastructure. As Korean firms continue building domestic AI capabilities, the success of this deal could influence other companies to pursue similar hardware diversification strategies.

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