US chip giant Nvidia will supply more than 260,000 of its most advanced artificial intelligence (AI) chips to South Korea's government, as well as Samsung, LG, and Hyundai.

The companies will all deploy the AI chips in factories to make everything from semiconductors and robots to autonomous vehicles, which means South Korea can 'now produce intelligence as a new export,' chief executive Jensen Huang said.

Mr. Huang did not disclose the value of the South Korean deals.

This caps off a busy week for Nvidia, which on Wednesday became the first company to be valued at $5 trillion and on Thursday saw signs of a thaw in US-China trade relations that may allow it to export more of its chips to China.

Speaking at a CEO summit on the sidelines of the Asia-Pacific Economic Cooperation (APEC) in Gyeongju, South Korea, Mr. Huang added that with the chips, companies would be able to create 'digital twins' with other factories around the world.

These deals form part of Nvidia's latest effort to expand AI infrastructure globally, further integrating AI into products and services.

Nvidia has been striking international partnerships which helped it become the first company ever to be valued at $5 trillion.

Caught in the Middle

The South Korean agreements come as Nvidia grapples with the fallout of the China-US trade war. China made up over a tenth of Nvidia's revenue last year, but its access to Nvidia's chips has been contentious.

We used to have 95% share of the AI business in China. Now we're at 0% share. And I'm disappointed by that, Huang stated in Gyeongju on Friday.

Trump remarked after his meeting with Xi on Thursday that Beijing intends to talk with Nvidia about its chip sales. He suggested the talks remain between China and Nvidia, with the US government acting as a 'referee.'

On Friday, Huang expressed his desire to sell Nvidia's state-of-the-art Blackwell chips to China, pending approval by the US President, due to export regulations on advanced AI chips.

Huang, however, remains hopeful for policy changes that could facilitate chip sales to China, stressing the mutual benefits for both nations.

AI Power

South Korea, already a hub for major semiconductor companies and vehicle manufacturers, aspires to become a regional leader in AI technology. Huang believes its access to energy and land makes it an optimal location for AI infrastructure.

More than 50,000 Nvidia chips will power data centers at the National AI Computing Center and facilities owned by South Korean firms like Kakao and Naver.

Nvidia relies on closely-knit supply chains throughout the Asia-Pacific region, naturally depending on partners like Samsung and TSMC for chip production.

Amidst national security concerns regarding US chip sales to China, the ongoing trade complexities have also led to innovations within China, as firms like Huawei and Alibaba prepare competing products.

Huang concluded that both the US and China can benefit from collaboration, underlining that American technology should aspire to be a global standard.