South Korea Poised to Lead in Physical Artificial Intelligence

Strategic Insights -

As the next wave of artificial intelligence (AI) technology sweeps the globe, Nvidia Corp.'s CEO Jensen Huang envisions South Korea as a prime player in the emerging industry. With its unique combination of software expertise, deep technical capabilities, and advanced manufacturing, Korea has a "virtuous cycle" opportunity to lead in physical AI, according to Huang. The country's strategic partnership with Nvidia, which includes deploying 260,000 graphic processing units (GPUs) with major companies, solidifies its position as a hub for AI computing outside the United States.

Key Takeaways:

  • South Korea has the necessary qualities to succeed in the AI industry, including software expertise, deep technical capabilities, and advanced manufacturing.
  • Nvidia's CEO Jensen Huang highlighted the country's potential in physical AI, citing its unique combination of software, AI technology, and manufacturing capabilities.
  • The partnership between Nvidia and South Korea involves deploying up to 260,000 GPUs with major companies, including Samsung Electronics, SK Group, Hyundai Motor Group, and Naver Cloud Corp.
  • The initiative will boost South Korea's total installed AI GPU capacity from about 65,000 to over 300,000 units, positioning the country as one of the world's largest hubs for AI computing.
  • Nvidia plans to build large-scale AI factories in South Korea, working alongside the government and major companies to advance the AI industry.
  • The partnership aims to establish South Korea as an AI hub for the region, attracting startups and companies from other countries to invest and operate in the country.
  • Samsung Electronics and SK hynix, key partners for Nvidia's chip production, have been praised for their memory technology capabilities, with Nvidia expressing confidence in their long-term partnership.

Statistics:

  • 260,000: The total number of GPUs that will be deployed in partnership with the government and major companies.
  • 65,000 and 300,000: The total installed AI GPU capacity in South Korea before and after the partnership, respectively.
  • 3 days: The duration of the APEC CEO Summit, which wrapped up following Jensen Huang's session.
  • 15 years: The amount of time since Nvidia CEO Jensen Huang last visited Korea.

Sources:

  • Yonhap News Agency (October 31, 2025)