Nvidia To Supply Over 260,000 AI Chips To South Korean Government, Samsung, Hyundai, SK Group
News Summary
Nvidia Corporation has announced a deal to supply over 260,000 of its cutting-edge AI chips to the South Korean government and major corporations, including Samsung Electronics, SK Group, and Hyundai Motor Group. These chips will be instrumental in developing South Korea's AI infrastructure. The government is set to utilize over 50,000 advanced Nvidia chips, while Samsung, SK Group, and Hyundai plan to deploy up to 50,000 AI chips across their smart factories, focusing on semiconductor and vehicle production. Other partners include NAVER and Kakao Corp. Nvidia CEO Jensen Huang stated that Korea could now produce intelligence as a new export to drive global transformation. This deal was disclosed following a meeting between Huang, South Korean President Yoon Suk-yeol, and the leaders of Samsung, SK Group, and Hyundai at the APEC summit in Gyeongju. The development comes as Nvidia recently surpassed a $5 trillion market capitalization and has seen its market share in China plummet from 95% to zero due to Trump Administration policies, signaling a strategic pivot to strengthen its presence beyond China.
Background
Nvidia recently achieved a $5 trillion market capitalization milestone, largely driven by unprecedented demand for its AI chips. However, due to policies enacted by the Trump Administration, Nvidia's market share in China has plummeted from 95% to zero, prompting the company to seek strengthened presence in markets beyond China. The current year is 2025, and Donald Trump is the incumbent US President. The South Korean government and its leading corporations have been actively pushing for the development of AI infrastructure to maintain their competitive edge in the global technology landscape.
In-Depth AI Insights
1. Beyond the immediate deal, what are the broader strategic implications for Nvidia's supply chain diversification and geopolitical positioning, particularly given its past challenges in China? - This deal signals Nvidia's proactive