Nvidia’s $5 Trillion Milestone: Expanding AI Dominance with Major South Korea Partnerships

Nvidia Expands Global AI Footprint with Major Deals in South Korea

In a move that grows its AI reach, Nvidia, a large US chip maker, has inked big deals with South Korea’s government and top tech firms like Samsung, LG, and Hyundai. The agreement, shared at the APEC meeting in Gyeongju, South Korea, will see over 260,000 of Nvidia’s state-of-the-art AI chips placed in many local industries.

Boosting South Korea’s AI Plans

Nvidia’s CEO, Jensen Huang, said these chips can change South Korea’s industries. They will help factories make semiconductors, robots, and self-driving cars. Huang said the deals let South Korea now send intelligence as a new export. This step shows the nation’s growing role in AI work.

South Korea’s government will use these chips to build its own AI systems. They will power data centers at the National AI Computing Center and at facilities run by firms such as Kakao and Naver. The country has ample energy, available land, and strong production skills. These traits make the base fit for more AI systems, Huang said.

Nvidia’s Expanding AI Role Globally

The deals in South Korea come in a big week for Nvidia. The company became the first ever to reach a market value of $5 trillion. Its many worldwide ties help add AI to a broad range of products.

At the meeting, Huang spoke of making "digital twins." Factories can now get a digital copy that links with other sites across the world. This plan may help run work better and spark fresh ideas.

Handling US-China Trade Issues

While Nvidia grows its global AI business, it must handle trade issues with China. Last year, China brought in more than 10% of Nvidia’s revenue. However, US rules now stop Nvidia from selling its best AI chips there.

Huang said, "We used to have 95% of the AI share in China. Now, we have 0%." Talks between US President Joe Biden and Chinese President Xi Jinping have now opened discussions with Nvidia about chip sales to China. The US government now acts as a helper in these talks. Huang hopes new rules will let Nvidia’s high-end Blackwell chips once more enter China. He said this shift helps both US and Chinese sides by letting American tech set global ways.

South Korea’s AI Position

South Korea wants to be a top tech maker as global supply chains shift. President Lee Jae Myung has vowed to add AI spending to meet issues like US tariffs and world pressures.

The nation’s strong tech field, with giants like Samsung and SK Hynix, fits well with Nvidia’s plans. Nvidia designs the AI chips but counts on Asian companies such as Samsung and TSMC to build them. TSMC makes Nvidia’s Blackwell chips, a sign of the region’s key role in the tech supply.

Market and Industry Effects

Along with the South Korea deals, Nvidia signed talks with groups like the US Energy Department, Nokia, Uber, and Stellantis. This mix of ties has given investors hope in AI’s rewards.

US security concerns still stop China from getting Nvidia’s top AI tools. In reply, China speeds up its own chip work and asks local firms to buy homegrown items. This trend challenges Nvidia’s lead in the Chinese market.

Looking ahead, Nvidia plans to keep its AI lead by growing its work in key markets while watching world matters that affect tech trade. The deals with South Korea mark a big step in that plan. They show the nation’s rising spot in the global AI network.

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Reporting from Gyeongju by Suranjana Tewari and Osmond Chia. Extra reports by Jaltson Akkanath Chummar.