Seoul: In a major announcement during the APEC summit in Gyeongju, Nvidia confirmed it will provide around 260,000 of its cutting-edge GPUs to South Korea. The move is part of a collaboration with the South Korean government and major firms including Samsung Electronics, SK Hynix, and Hyundai to expand the country’s artificial intelligence capabilities.

Nvidia CEO Jensen Huang met with South Korean President Lee Jae Myung to finalise the deal, which aims to strengthen the nation’s sovereign AI cloud and “AI factories.” Huang described the initiative as part of a global push to “generate intelligence at scale” and drive a new industrial revolution powered by AI.

A boost for South Korea’s AI ambitions

President Lee’s office said the partnership will help accelerate South Korea’s AI computing power and manufacturing innovation. The project aligns with Seoul’s ambition to establish itself as a global AI hub and technological leader in the Indo-Pacific region.

Huang, often compared to Apple’s Steve Jobs for his visionary leadership, received a rockstar reception in South Korea, reflecting the country’s growing enthusiasm for AI-driven innovation.

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Nvidia’s global rise and trade backdrop

Nvidia’s announcement comes just days after it became the world’s first $5 trillion company, underscoring its dominant role in the AI sector. The company’s GPUs power most of the world’s AI models, from data centres to autonomous systems.

The meeting also coincided with discussions between US President Donald Trump and Chinese President Xi Jinping, where both leaders agreed to ease their trade tensions. Trump confirmed that China will negotiate chip purchases with Nvidia but will not receive access to its most advanced Blackwell AI chips, which remain restricted under US export controls.

Broader implications and global caution

While the Nvidia–South Korea partnership highlights strengthening US–Asia tech cooperation, global financial institutions have warned of potential risks linked to the AI-driven stock surge. The Bank of England and the International Monetary Fund have cautioned that inflated tech valuations could lead to a future market correction if the AI boom slows down.

Despite such warnings, South Korea’s new agreement with Nvidia underscores a broader global race to harness AI power—cementing the country’s role in the next wave of technological transformation.
(With AFP inputs)