Nvidia Partners with South Korean Tech Giants to Enhance AI Manufacturing

Fri Oct 31 2025 21:13:18 GMT+0200 (Eastern European Standard Time)

Nvidia secures a monumental contract to supply advanced AI chips to South Korea, aiming to bolster the nation’s tech capabilities amidst evolving global trade dynamics.

Nvidia has announced a major AI deal with South Korean companies Samsung, LG, and Hyundai, providing over 260,000 advanced AI chips. This collaboration is projected to transform South Korea into an AI production hub, aligning with Nvidia's goal of expanding its global AI infrastructure. The announcement follows Nvidia achieving a market valuation of $5 trillion, highlighting its pivotal role in the tech industry and its response to the challenges posed by US-China trade tensions.

The 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 Samsung, LG, and Hyundai.

The companies will all deploy the AI chips in factories to make everything from semiconductors and robots to autonomous vehicles and meant that South Korea can now produce intelligence as a new export, chief executive Jensen Huang said.

Mr Huang did not disclose the value of the South Korean deals.

It caps off a busy week for Nvidia, which on Wednesday became the first company to be valued at $5 trillion and on Thursday saw signs of a thaw in US-China trade relations that may mean it can export more of its chips to China.

Speaking at a CEO summit on the sidelines of Asia Pacific Economic Cooperation (Apec) in Gyeongju, South Korea, Mr Huang added that with the chips, companies would be able to create digital twins with other factories around the world.

These deals form part of Nvidia's latest effort to expand AI infrastructure globally, to further integrate AI into products and services.

Nvidia has been striking international partnerships which helped it become the first company ever to be valued at $5 trillion.

The South Korea deals come as Nvidia grapples with the fallout of the China-US trade war.

China made up more than a tenth of Nvidia's revenue last year, but the extent of China's access to Nvidia's chips has been a point of friction with Washington.

On Friday, Huang said he would like to sell Nvidia's state-of-the-art Blackwell chips to China, although the decision needed to be made by the US President.

The US imposes export controls on sales to China of Nvidia's most advanced AI chips.

South Korea, which is already home to major semiconductor companies and vehicle manufacturers, aims to become a regional AI hub. President Lee Jae Myung has promised to prioritize AI investment to tackle challenges posed by US tariffs.

The Nvidia deal will enable South Korea to foster "sovereign AI" by building its own computing infrastructure, supported by Nvidia's advanced chips.

This partnership underscores the critical role of Nvidia in shaping the future of AI technology, contributing to a consolidated supply chain in the Asia Pacific region.