Nvidia Partners with South Korean Giants in AI Expansion

Fri Oct 31 2025 21:09:54 GMT+0200 (Eastern European Standard Time)

Nvidia's landmark AI deals with South Korean tech giants mark a significant step in global AI infrastructure development amidst evolving geopolitical landscapes.

Nvidia has announced it will supply over 260,000 advanced AI chips to South Korea's government and major companies like Samsung, LG, and Hyundai. The deals, which highlight a significant investment in AI infrastructure, come as Nvidia aims to expand its reach amid the changing dynamics of US-China trade relations. The South Korean government intends to establish its own AI-controlled computing infrastructure with the aid of Nvidia's technology.

US chip giant Nvidia will supply more than 260,000 of its most advanced artificial intelligence (AI) chips to South Korea's government, as well as major tech companies including Samsung, LG, and Hyundai.

The companies will deploy the AI chips in a variety of factories, enabling them to produce everything from semiconductors and robots to autonomous vehicles. This move, according to CEO Jensen Huang, enables South Korea to now produce intelligence as a new export.

Although Huang did not disclose the specific value of these South Korean deals, they signify a major step for Nvidia in solidifying its presence in the Asian market and expanding global AI infrastructure.

This week has been pivotal for Nvidia, which on Wednesday became the first company ever to be valued at $5 trillion, coinciding with hints of a thaw in US-China trade relations that may facilitate increased exports of Nvidia's chips to China, despite ongoing tensions.

During a CEO summit at the Asia Pacific Economic Cooperation (APEC) meeting in Gyeongju, South Korea, Huang noted that the chips will allow companies to create digital twins with factories worldwide. These partnerships are part of Nvidia's broader strategy to integrate AI into various products and services globally.

Caught in the Middle

The South Korean deals come as Nvidia navigates the repercussions of the ongoing China-US trade war. Historically, China has been a significant market for Nvidia, representing over 10% of its revenue last year. However, access to the Chinese market has become complicated due to export restrictions imposed by the US.

Huang expressed disappointment, stating, We used to have a 95% share of the AI business in China. Now we're at 0% share. He remains hopeful for negotiations with Chinese officials to discuss potential sales.

On the geopolitical front, US President Trump noted after a recent meeting with China’s Xi that talks are ongoing, and while they remain between China and Nvidia, the US will act as a referee.

AI Power

South Korea aims to position itself as a regional AI hub, leveraging its strong semiconductor industry and vehicle manufacturing capabilities. NVIDIA chips will power new computing infrastructure at the National AI Computing Center and other facilities controlled by South Korean firms like Kakao and Naver.

With the Nvidia deal, South Korea plans to develop what it terms sovereign AI, reinforcing its autonomous capabilities in the face of US tariffs and global competition.

Nvidia’s partnerships are part of a larger strategy to reassure investors amid geopolitical pressures. The company has also entered into agreements with various organizations, including the US Department of Energy, as it looks to expand its market influence and ensure a standard for AI technologies globally.

As the international dynamics continue to shift, Nvidia remains at the forefront of technological advancements, emphasizing collaboration and innovation in AI.