In a move that’s set to reshape the global artificial intelligence landscape, Nvidia has announced a sweeping partnership with South Korea’s government and some of its largest technology companies to supply more than 260,000 of its most advanced AI chips. The deal, unveiled on October 31, 2025, at the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, marks one of the largest national investments in AI infrastructure to date—and South Korea is now poised to become a regional powerhouse in artificial intelligence.
The announcement came as Nvidia’s founder and CEO Jensen Huang took the stage at the APEC Summit, backed by a coalition that includes the Ministry of Science and ICT, Samsung Electronics, SK Hynix, Hyundai Motor Group, LG, NAVER Cloud, and more. Speaking to a packed audience, Huang declared, “It’s vital that we build the ecosystem, not just the AI infrastructure, of Korea.” According to the BBC, he also emphasized that with these chips, Korean companies will be able to create “digital twins” with other factories around the world, further integrating AI into products and services.
Under the agreement, the South Korean government will use about 50,000 Nvidia GPUs to power a new national cloud computing center focused on AI. Samsung and SK Hynix will each receive 50,000 GPUs to enhance their manufacturing processes and accelerate the development of advanced semiconductors. Meanwhile, Hyundai Motor Group and Nvidia plan to collaborate on self-driving cars, smart factories, and robotics, utilizing another 50,000 of Nvidia’s cutting-edge Blackwell GPUs. NAVER Cloud, another major partner, is set to deploy more than 60,000 GPUs for its own AI infrastructure, according to reporting from Nvidia and the Associated Press.
This initiative is far more than a simple hardware deal. It’s an ambitious attempt to rewire South Korea’s industrial base for intelligence, as the country aims to leap into the future with what Huang and government officials are calling “sovereign AI.” The government’s sovereign AI infrastructure program will deploy its GPUs through leading cloud providers like NHN Cloud, Kakao Corp., and NAVER Cloud, with an initial wave including 13,000 Nvidia Blackwell GPUs and more to be delivered in the coming years.
The scale of private sector investment is, frankly, staggering. Samsung is leveraging Nvidia’s CUDA-X, cuLitho, Nemotron models, and Omniverse to build digital twins for semiconductor manufacturing and to expand its robotics portfolio. SK Group is designing an AI factory capable of hosting up to 60,000 GPUs, including an AI cloud powered by Nvidia RTX PRO 6000 Blackwell Server Edition GPUs. Hyundai Motor Group, for its part, is working closely with Nvidia and the Korean government to develop an AI factory with 50,000 Blackwell GPUs, focusing on AI model training, validation, and deployment for manufacturing, autonomous driving, and robotics. NAVER’s plans to use over 60,000 Nvidia GPUs will target industry-specific models for shipbuilding, security, and AI services for Korean citizens.
South Korea’s ambitions don’t stop at industrial AI. The government is also investing heavily in foundational AI research. The Ministry of Science and ICT is leading a Sovereign AI Foundation Models project in collaboration with LG AI Research, NAVER Cloud, NC AI, SK Telecom, Upstage, and Nvidia. This initiative will use Nvidia’s NeMo software and open Nemotron datasets to develop Korean language models with reasoning and speech capabilities—making AI more relevant and accessible for Korean speakers.
Quantum computing is another frontier being explored. The Korea Institute of Science and Technology Information (KISTI) is partnering with Nvidia to establish a Center of Excellence for quantum computing and scientific research. Using KISTI’s sixth-generation HANGANG supercomputer and Nvidia’s CUDA-Q platform, the center will explore hybrid quantum computing, physics-informed AI models, and scientific foundation models built with the Nvidia PhysicsNeMo framework.
Not to be outdone, Nvidia is also collaborating with Samsung, SK Telecom, ETRI, KT, LGU+, and Yonsei University to develop AI-RAN and 6G infrastructure. This next-generation mobile network technology will offload GPU computation from devices to base stations, reducing energy costs and extending battery life—key for the widespread adoption of robotics and other AI-powered systems.
Supporting startups and training the next generation of AI talent is also central to the initiative. Nvidia is expanding its Inception program in Korea, providing new alliances and access to accelerated computing infrastructure for emerging companies. A new Center of Excellence powered by Nvidia RTX PRO 6000 Blackwell GPUs will help startups build physical AI applications. Meanwhile, the Nvidia Deep Learning Institute will offer AI upskilling programs to train Korea’s future workforce, ensuring the country has the expertise needed to maintain its competitive edge.
For Nvidia, these deals cap a remarkable week. On October 29, 2025, the company became the first ever to be valued at $5 trillion—a milestone that underscores the seismic impact of the AI boom. According to the BBC, Nvidia’s share price has been buoyed by a wave of new deals and hopes of a revival in China sales, following trade talks between US President Donald Trump and Chinese President Xi Jinping.
The South Korea agreements come at a time when Nvidia is caught in the crosscurrents of the US-China trade war. China previously accounted for more than a tenth of Nvidia’s revenue, but US export controls have slashed the company’s AI business share in China from 95% to zero. “We used to have 95% share of the AI business in China. Now we’re at 0% share. And I’m disappointed by that,” Huang said in Gyeongju, as reported by the BBC. He added that he would like to sell Nvidia’s state-of-the-art Blackwell chips to China, but the decision ultimately lies with the US President.
President Trump, after meeting with President Xi on October 30, indicated that Beijing will hold talks with Nvidia about chip sales. Trump said the talks remained between China and the US company, but that the US government would act as a "referee" of sorts. Huang expressed hope that new policies would eventually allow Nvidia’s technology back into China, arguing, “It’s in the best interest of America to have the China market and it’s in China’s interest to have an American company bring technology to the country. We’d like to see American technology be the global standard.”
The South Korean government, meanwhile, is betting big on AI as a cornerstone of its economic future. President Lee Jae Myung has made AI investment a top priority, especially in the face of US tariffs. The government’s plan to build and control its own AI computing infrastructure—sovereign AI—signals a desire for both technological independence and leadership in the fast-evolving world of artificial intelligence.
As Nvidia continues to strike international partnerships and expand its global footprint, the world will be watching to see if South Korea’s ambitious AI push delivers on its promise. With the infrastructure now in place, the stage is set for a new era in AI-driven industry, research, and innovation.
