Nvidia reaches major AI agreement with Korean tech giant: Deploying 260,000 Blackwell chips to build Asia’s first "industrial AI cloud"!

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Nvidia is advancing a milestone AI infrastructure deployment plan in South Korea, supplying more than 260,000 AI chips to the country’s largest tech companies.

According to media reports, Nvidia has reached an agreement with the Ministry of Science and ICT of South Korea, as well as Samsung Electronics, Hyundai Motor Group, and SK Group, to provide more than 260,000 AI chips to launch South Korea’s AI project. Nvidia did not disclose the financial terms of the deal.

Nvidia CEO Jensen Huang attended the APEC CEO Summit held in South Korea on Friday. This visit is a continuation of his global push for artificial intelligence computing applications, aiming to further boost demand for the company’s products.

Samsung, Hyundai, SK Group Each Deploy Over 50,000 Chips

According to the agreement, the South Korean government will build what is called “sovereign AI”—that is, computing infrastructure controlled by the government. In the future, more than 50,000 of Nvidia’s latest AI accelerators will be deployed in data centers, including the National AI Computing Center and facilities of companies such as Kakao, Naver, and NHN Cloud.

The scale of this deployment reflects South Korea’s strategic ambition in the AI field. By establishing independently-controlled computing infrastructure, the South Korean government seeks to gain an advantageous position in the global AI competition and provide strong technical support for domestic tech companies.

On the corporate level, South Korea’s tech giants have also set ambitious plans.

As one of the world’s largest semiconductor manufacturers, Samsung Electronics will build an “AI factory” equipped with over 50,000 Nvidia chips. Meanwhile, Hyundai Motor Group has also committed to purchasing a similar number of processors based on Nvidia’s Blackwell architecture to develop the company’s AI models and advance its progress in intelligent manufacturing and autonomous driving.

Asia’s First “Industrial AI Cloud”

In cooperation with SK Group, Nvidia’s deployment is more focused on the industrial application sector, planning to build a pioneering project.

SK Group’s subsidiaries, including SK Telecom and SK Hynix, are deploying a range of Nvidia RTX Pro 6000 Blackwell server chips.

Nvidia said this move aims to build Asia’s first “industrial AI cloud.” The facility will focus on robotics and other AI applications in the physical world, marking the further penetration of AI technology from the cloud to real-world industrial scenarios.

Samsung Seeks to Supply HBM4 Chips to Nvidia

It’s worth noting that the cooperation between Nvidia and the South Korean giants is not one-way.

On Friday, Samsung Electronics stated that it is in “close discussions” to supply its next-generation high-bandwidth memory (HBM) chip, HBM4, to Nvidia.

This development reveals a mutually beneficial, symbiotic relationship between the two parties.

In the race for AI chips, Samsung is not only a major customer for Nvidia chips but is also actively striving to become its key supplier, aiming to catch up with competitors in the fiercely competitive high-performance memory chip market. This further highlights South Korea’s pivotal position in the global semiconductor supply chain.

$500 Billion Robust Revenue Outlook

The AI boom has pushed Nvidia’s sales and market value to soar over the past two years. Earlier this week, Nvidia became the first company to surpass a $5 trillion market capitalization.

According to a previous article by Wallstreetcn, on October 28, Nvidia CEO Jensen Huang disclosed at the GTC conference that the company has "visibility" towards achieving cumulative data center business revenue of $500 billion during 2025-2026. This revenue outlook will include its Blackwell and next-generation Rubin architecture products.

Goldman Sachs commented that although their forecast for Nvidia’s 2026 fiscal year is already about 7% higher than market consensus, based on the latest management commentary, they believe there is still an "upward revision tendency" in their forecast numbers. Improved forward revenue visibility is an "incremental positive factor" for Nvidia’s stock price, reaffirming their "buy" rating.

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