Nvidia Secures Major AI Contracts With South Korean Tech Giants

Fri Oct 31 2025 21:38:51 GMT+0200 (Eastern European Standard Time)

In a significant move towards enhancing AI capabilities, Nvidia has signed contracts to supply advanced AI chips to South Korean firms, including government agencies and tech leaders like Samsung and LG. This marks a milestone as Nvidia aims to grow its presence in the Asian market amidst US-China trade tensions.

Nvidia, the leading US chip manufacturer, has secured a deal to provide over 260,000 AI chips to South Korea, partnering with major firms such as Samsung and LG. The move is part of a broader strategy to expand its global AI infrastructure and follows its recent valuation milestone of $5 trillion. CEO Jensen Huang emphasized the potential for South Korea to become a hub for AI production despite the ongoing challenges posed by US trade policies.

Nvidia, the renowned US chip giant, has announced an ambitious partnership with South Korea, set to supply the country with more than 260,000 of its cutting-edge artificial intelligence (AI) chips. This notable deal includes key partnerships with South Korean technology leaders such as Samsung, LG, and Hyundai, which will utilize these chips in a variety of applications ranging from semiconductors and robotics to autonomous vehicles.

During his recent address at a CEO summit held on the sidelines of the Asia Pacific Economic Cooperation (APEC) in Gyeongju, Nvidia's CEO Jensen Huang remarked that through these chips, South Korea can now leverage AI as a new export sector. While the financial details of the agreements were not disclosed, Huang's comments underscore the substantial impact this deal may have on South Korea's tech landscape.

This announcement comes on the heels of Nvidia achieving a historic valuation of $5 trillion, marking it as the first company ever to reach this financial milestone. Furthermore, positive signs of thawing in US-China trade relations could open new avenues for Nvidia, potentially allowing it to export more of its chips to China moving forward.

Huang elaborated that these AI chips would empower companies to create 'digital twins' in factories worldwide, aiming to facilitate a more integrated and efficient production cycle.

The backdrop to this partnership includes the complexities of the current US-China trade war, particularly affecting Nvidia's ability to penetrate the Chinese market, where it previously held a significant share. Huang expressed disappointment over losing this market access, noting reducing their share of the AI business in China from 95% to 0%.

Despite these challenges, the expectation of renewed dialogue on chip sales between the US and China offers a glimmer of hope for future partnerships.

Additionally, South Korea has expressed ambitions to position itself as a regional AI hub, with President Lee Jae Myung prioritizing AI as a central element of national strategy amid US tariff pressures. With this deal, the South Korean government plans to build a computing infrastructure termed sovereign AI, enabling enhanced control over national data and technology resources.

Huang identified South Korea's favorable access to energy, land, and construction capabilities as critical factors in expanding AI infrastructure in the region. This deal also aligns with Nvidia's broader corporate strategy to establish AI technologies globally amidst rising competition and innovation within both South Korea and China.