South Korea Acquires 260,000 NVIDIA GPUs in Landmark Technology Pact
South Korea has struck a landmark deal for 260,000 advanced GPUs from NVIDIA. NVIDIA CEO Jensen Huang announced the “AI alliance” on Oct. 31 in Gyeongju, where he met with the leaders of Samsung, SK Group, Hyundai, LG, and Naver, and President Lee Jae-myung during the Asia-Pacific Economic Cooperation (APEC) summit.
The GPUs, estimated between $7.8 billion and $10.4 billion, will be divided between public and private sectors. Naver will receive 60,000 units, while the Ministry of Science and ICT (MSIT), Samsung, SK Group, Hyundai, and LG will each receive 50,000 units. This shipment will be nearly six times the current number of NVIDIA GPUs in South Korea, counted at 45,000 units.
The MSIT aims to develop a national AI computing center that can support universities, startups, and research institutions with its allocation. This facility would further level the playing field, allowing institutions that had previously struggled to secure GPUs to access AI infrastructure.
Each company is now shaping its AI strategy around core business strengths. Samsung is building a semiconductor AI mega-factory to embed AI into chip design and manufacturing. It’s also collaborating with NVIDIA on the next-generation high-bandwidth memory integral to AI performance. SK Group has been building a 100-megawatt AI data center in Ulsan, investing in digital twins for semiconductor manufacturing. It signed an agreement with NVIDIA to develop AI-RAN, a 6G communication platform. Hyundai is investing $3 billion in developing AI-powered autonomous vehicles and robotics with the government and NVIDIA.
Naver will develop a Korean-language specialized large language model (LLM) and the infrastructure necessary to support it, in addition to partnering with NVIDIA for a “physical AI” platform for the nation’s industries, such as shipbuilding and energy. LG is developing smart factory solutions and humanoid AI using the NVIDIA Isaac GR00T model.
This alliance will cement South Korea’s position as a leader in AI infrastructure and applications in the global AI race. Rising GPU shipments to South Korea are expected to benefit local semiconductor companies such as Samsung Electronics and SK Hynix, which provide high-bandwidth memory (HBM) for GPUs, creating a mutually beneficial relationship between NVIDIA and Korean chipmakers. However, the real test will lie in execution: the development of talent, integration of systems, and scaling of innovation.
Sean Jung R&D Division Director teen/1762915766/1613367592
1. Who were the key South Korean leaders present at the announcement in Gyeongju?
2. Who are the intended beneficiaries of the AI computing center to be developed by the Ministry of Science and ICT (MSIT)?
3. What is the total number of GPUs being acquired, and how does this compare to South Korea’s current GPU capacity?
4. What technological developments are expected from Samsung’s collaboration with NVIDIA on next-generation high-bandwidth memory?
1. Who do you think benefits the most from this alliance ? the Korean government, local companies, or NVIDIA? Why?
2. What challenges do you think South Korea might face in training enough AI experts to use this technology effectively?
3. If you were the president of South Korea, how would you use the 260,000 NVIDIA GPUs?
4. If you were leading one of the five companies (Samsung, SK, LG, Hyundai, or Naver), which AI goal would you prioritize?
South Korea has struck a landmark deal for 260,000 advanced GPUs from NVIDIA. NVIDIA CEO Jensen Huang announced the “AI alliance” on Oct. 31 in Gyeongju, where he met with the leaders of Samsung, SK Group, Hyundai, LG, and Naver, and President Lee Jae-myung during the Asia-Pacific Economic Cooperation (APEC) summit.
