South Korea emerges as a hub for advanced AI
Nvidia will supply over 260,000 of its most advanced AI chips to South Korea’s government and leading companies including Samsung, LG, and Hyundai. The chips will power factories producing semiconductors, robots, and autonomous vehicles. Chief executive Jensen Huang said the deal allows South Korea to “export intelligence as a new product.” He did not reveal the total value of the contracts.
The announcement caps a historic week for Nvidia. On Wednesday, the company became the first ever to reach a $5 trillion valuation. A day later, optimism grew that improving US-China relations could allow renewed chip exports to China.
Speaking at a CEO summit during the Asia-Pacific Economic Cooperation meeting in Gyeongju, Huang said the chips will allow companies to create “digital twins” of factories around the world. The agreement reflects Nvidia’s ongoing effort to expand AI infrastructure and integrate the technology into global industries.
Global partnerships drive Nvidia’s rise
Nvidia’s international collaborations have been key to its rapid growth. The company continues to secure its leadership in the global AI market.
However, the South Korean deals come amid challenges from the US-China trade conflict. China once generated more than ten percent of Nvidia’s revenue, but export restrictions have blocked its access to the company’s most advanced chips.
“We used to have 95% of the AI business in China. Now we’re at zero,” Huang said in Gyeongju. “I’m disappointed by that.”
Potential for renewed China trade
After meeting Chinese President Xi Jinping, former US President Donald Trump said Beijing will begin talks with Nvidia about potential chip sales. He described the discussions as a matter between China and Nvidia, with the US acting as a “referee.”
Huang said he hopes to sell Nvidia’s Blackwell chips to China, though the decision rests with the US President. Current export rules still restrict sales of the company’s most advanced AI processors to Chinese customers.
Huang offered no updates on the talks but expressed optimism for future trade. “It’s in America’s interest to keep the China market,” he said. “And it’s in China’s interest to welcome American technology. We want American innovation to define global standards.”
South Korea invests in a sovereign AI future
South Korea, already a leader in semiconductors and automotive manufacturing, aims to become a regional AI powerhouse.
Huang described the country as ideal for AI development due to its energy resources, available land, and industrial infrastructure. President Lee Jae Myung has pledged to prioritise AI investment, especially amid US tariff pressures.
With Nvidia’s support, South Korea will develop national computing systems under the concept of “sovereign AI.” More than 50,000 Nvidia chips will power data centres at the National AI Computing Center and at companies including Kakao and Naver.
Asia’s tech ecosystem strengthens Nvidia
Nvidia depends heavily on Asia’s interconnected supply chains. The company designs chips but relies on partners such as Samsung, SK Hynix, and TSMC for production.
TSMC manufactures Nvidia’s most advanced AI processors, including the flagship Blackwell series. Samsung produces parts for the H20 processor, a scaled-down version designed to comply with US export restrictions for China.
US officials warn that exporting AI chips to China could strengthen Beijing’s military and technological capabilities. In response, China has accelerated domestic chip innovation. Huawei and Alibaba have introduced AI chips that they claim rival Nvidia’s products.
Beijing has reportedly encouraged local firms to reduce Nvidia purchases and support domestic alternatives.
“We deeply respect China’s technological capabilities,” Huang said on Friday.
Investors back Nvidia’s ambitious expansion
Nvidia’s share price surged this week following a wave of new partnerships. The company signed deals with the US Department of Energy, Nokia, Uber, and Stellantis, boosting investor confidence in AI’s long-term profitability.
Speculation about renewed trade with China after Trump’s meeting with Xi further lifted Nvidia’s market value. Nvidia’s expanding global presence reflects its ambition to lead the AI revolution while navigating complex geopolitical challenges.
