South Korea is making a monumental push to establish itself as a global artificial intelligence powerhouse through a landmark collaboration with NVIDIA that will see the deployment of over 260,000 of the American company's advanced graphics processing units (GPUs).[1][2] The sweeping public-private initiative, announced during the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, involves the South Korean government and the nation's largest industrial conglomerates—Samsung Electronics, SK Group, Hyundai Motor Group, and NAVER.[2][3] This massive infusion of computational power is set to dramatically expand the country's AI infrastructure, which currently operates with a much smaller number of advanced GPUs, and aims to embed artificial intelligence across the nation's critical manufacturing and technology sectors.[4][5] The deal, valued at an estimated $7.8 to $10.4 billion, underscores a national strategy to not only adopt AI but to become a leading producer of "intelligence as a new export."[4][1]

At the core of this ambitious national project is a strategic distribution of NVIDIA's cutting-edge processors, including the latest Blackwell architecture GPUs, among public and private entities.[4][5] The Ministry of Science and ICT will receive 50,000 GPUs to bolster sovereign AI capabilities, including the development of independent foundational models and the creation of a National AI Computing Center.[4][1] This government allocation is designed to democratize access to high-performance computing, enabling universities, research institutions, and startups to participate in AI development that was previously hindered by a scarcity of resources.[4] On the corporate side, Samsung Electronics, SK Group, and Hyundai Motor Group will each receive 50,000 GPUs, while NAVER, the operator of South Korea's largest search engine, will acquire the largest share of 60,000 units to expand its hyperscale AI services and infrastructure.[4][2][6] This collaborative framework is intended to create a virtuous cycle of infrastructure, technology, and investment, positioning South Korea as a pivotal AI hub in the Asia-Pacific region.[2]

The nation's industrial giants plan to leverage this massive computational boost to create next-generation "AI factories," fundamentally transforming their manufacturing processes from design to production.[4][2] Samsung Electronics will integrate its 50,000 GPUs throughout its entire manufacturing workflow to advance semiconductor design, robotics, and smart manufacturing.[6][7][8] Similarly, SK Group intends to build a large-scale AI factory and establish Asia's first enterprise-led manufacturing AI cloud, utilizing digital twin technology across its SK Hynix semiconductor lines to create virtual replicas of real factories for optimization.[4][2] Hyundai Motor Group is making a significant investment, reportedly around $3 billion in collaboration with NVIDIA, to pioneer "physical AI," where artificial intelligence directly interacts with the physical world.[2][9] This initiative will use 50,000 Blackwell GPUs to develop integrated AI models for autonomous driving, robotics, and intelligent production systems, supported by a new NVIDIA AI Technology Center and a Hyundai Physical AI Application Center.[2][9]

The strategic implications of this large-scale GPU deployment extend far beyond domestic industrial transformation, cementing South Korea's critical position in the global AI supply chain. The partnership deepens the symbiotic relationship between NVIDIA and South Korea's world-leading memory chip makers, Samsung and SK Hynix, which are key suppliers of the high-bandwidth memory (HBM) essential for high-performance GPUs.[4] This move is seen as a significant step toward "sovereign AI," ensuring the nation has the computational resources to develop its own AI models and applications, such as NAVER's efforts to build a large language model specialized for the Korean language.[4][7] By securing one of the largest single commitments of NVIDIA GPUs globally—surpassing pledges to countries like the UK and Germany—South Korea is aggressively positioning itself to compete with other major AI players and transform its renowned manufacturing economy into a leading producer of artificial intelligence on the world stage.[5]