South Korea becomes a key hub for artificial intelligence
Nvidia will deliver more than 260,000 of its most advanced AI chips to South Korea’s government and major firms including Samsung, LG, and Hyundai. The chips will power factories producing semiconductors, robots, and self-driving cars. Chief executive Jensen Huang said this marks a new chapter where South Korea can “export intelligence as a new product.” He did not reveal the total value of the agreements.
The announcement crowns a record-breaking week for Nvidia. On Wednesday, it became the first company in history to reach a $5 trillion valuation. A day later, optimism grew that easing tensions between Washington and Beijing could reopen chip exports to China.
At a CEO summit during the Asia-Pacific Economic Cooperation meeting in Gyeongju, Huang said the new chips will allow companies to create “digital twins” of factories worldwide. The agreements signal Nvidia’s mission to expand AI infrastructure and integrate artificial intelligence across global industries.
Strategic partnerships drive Nvidia’s growth
Nvidia’s international collaborations have been central to its meteoric rise. The company is moving quickly to secure its role at the heart of the global AI industry.
However, the South Korean deals arrive as Nvidia faces the impact of the US-China trade war. China once accounted for more than ten percent of Nvidia’s revenue, but export restrictions have now 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.”
Renewed dialogue offers hope for China trade
After a meeting with Chinese President Xi Jinping, former US President Donald Trump announced that Beijing will begin talks with Nvidia about potential chip sales. Trump called the talks a matter between China and Nvidia but said the US government would act as a “referee.”
Huang said he wants to sell Nvidia’s latest Blackwell chips to China, though the final decision lies with the US President. Current US export rules still prohibit sales of Nvidia’s most advanced AI chips to Chinese customers.
Huang did not share updates on the discussions but voiced optimism about future cooperation. “It’s in America’s interest to keep the China market,” he said. “And it’s in China’s interest to embrace American technology. We want American innovation to define global standards.”
South Korea invests in AI to secure its future
Already a powerhouse in semiconductors and automotive manufacturing, South Korea now aims to lead the region in artificial intelligence.
Huang described the country as ideal for AI development thanks to its energy supply, land availability, and advanced factory infrastructure. President Lee Jae Myung has pledged to prioritise AI investment, particularly in response to US tariffs.
With Nvidia’s help, the government plans to 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 at companies such as Kakao and Naver.
Asia’s tech industry strengthens Nvidia’s position
Nvidia relies heavily on the interconnected supply chains of the Asia-Pacific region. The company designs chips but outsources manufacturing to key partners like Samsung, SK Hynix, and TSMC.
TSMC produces Nvidia’s most advanced processors, including the flagship Blackwell series. Samsung manufactures parts for the H20 processor, a scaled-down version designed to comply with US export restrictions for China.
Some security experts in the US warn that selling AI chips to China could strengthen Beijing’s military and technological capabilities. In response, China has accelerated its domestic innovation. Huawei and Alibaba have introduced AI chips they say can rival Nvidia’s designs.
Beijing has also reportedly urged local firms to avoid buying Nvidia products and to choose Chinese-made alternatives.
“We deeply respect China’s technological capabilities,” Huang said on Friday.
Investors respond to Nvidia’s ambitious expansion
Nvidia’s share price soared this week after a series of major announcements. The company revealed new partnerships with the US Department of Energy, Nokia, Uber, and Stellantis, reassuring investors of AI’s long-term profitability.
Speculation about renewed exports to China after Trump’s meeting with Xi further boosted the company’s market value. Nvidia’s global strategy reflects its determination to lead the AI era while balancing innovation, competition, and geopolitical challenges.
