South Korea becomes a central hub for artificial intelligence
Nvidia will supply more than 260,000 of its most advanced AI chips to South Korea’s government and leading firms including Samsung, LG, and Hyundai. The chips will power factories producing semiconductors, robots, and autonomous vehicles. Chief executive Jensen Huang said the agreement allows South Korea to “export intelligence as a new product.” He did not disclose the total value of the contracts.
The announcement concludes a historic week for Nvidia. On Wednesday, it became the first company ever to reach a $5 trillion valuation. A day later, optimism grew that easing trade tensions between Washington and Beijing could reopen chip exports to China.
Speaking at a CEO summit during the Asia-Pacific Economic Cooperation meeting in Gyeongju, Huang said the chips will enable companies to create “digital twins” of factories around the world. The agreements mark Nvidia’s continued push to expand AI infrastructure and integrate artificial intelligence across industries.
Global partnerships strengthen Nvidia’s leadership
Nvidia’s international alliances have been central to its record-breaking growth. The company continues to secure its position as a global AI leader.
However, the South Korean agreements come amid the ongoing 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 powerful 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.”
China trade talks offer potential opportunities
After meeting Chinese President Xi Jinping, former US President Donald Trump said Beijing will begin talks with Nvidia about potential chip sales. Trump described the discussions as a matter between China and Nvidia, with the US acting as a “referee.”
Huang said he would like to sell Nvidia’s advanced Blackwell chips to China, though the final decision rests with the US President. Current export regulations still prevent sales of Nvidia’s most advanced AI processors to Chinese customers.
Huang did not provide updates on the talks but expressed hope for change. “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 set global standards.”
South Korea invests in an AI-driven future
South Korea, already a leader in semiconductors and automotive production, aims to become a regional AI hub.
Huang described the country as ideal for AI growth due to its energy capacity, available land, and industrial infrastructure. President Lee Jae Myung has pledged to prioritise AI investment, particularly amid US tariff pressures.
With Nvidia’s support, South Korea will build 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 companies such as Kakao and Naver.
Asia’s technology ecosystem strengthens Nvidia
Nvidia relies heavily on Asia’s interconnected supply chains. The company designs chips but depends on partners such as Samsung, SK Hynix, and TSMC for manufacturing.
TSMC produces Nvidia’s most advanced AI processors, including the flagship Blackwell series. Samsung supplies components for the H20 processor, a modified version built to comply with US export restrictions for China.
US officials warn that selling high-end AI chips to China could enhance its military and technological capabilities. In response, China has accelerated domestic chip innovation. Huawei and Alibaba have unveiled AI processors they claim rival Nvidia’s designs.
Beijing has also reportedly urged local firms to reduce Nvidia purchases in favour of domestic alternatives.
“We deeply respect China’s technological capabilities,” Huang said on Friday.
Investors respond to Nvidia’s ambitious strategy
Nvidia’s share price surged this week after announcing multiple partnerships. Deals with the US Department of Energy, Nokia, Uber, and Stellantis reassured investors about AI’s long-term returns.
Speculation about renewed China trade after Trump’s meeting with Xi added further momentum. Nvidia’s growing global reach highlights its ambition to lead the AI revolution while navigating geopolitical challenges.
