During a recent visit to South Korea, Nvidia's CEO Jensen Huang announced several significant partnerships with major local companies, including SK Hynix, SK Telecom, Naver, Doosan, LG Group, and Hyundai Motor. These alliances aim to leverage Nvidia's technology for advanced memory solutions and the establishment of AI-powered data centers.
At a media briefing after meeting with SK Group Chairman Chey Tae-won in Seoul on June 8, Huang highlighted a multi-year collaboration with SK Hynix, a leading memory chip manufacturer. This partnership is expected to facilitate the development of cutting-edge memory types essential for global AI data centers, addressing the increasing demand for such resources as Nvidia expands its operations into areas like robotics and AI supercomputing.
"SK Hynix has been Nvidia's largest memory partner and will continue to maintain that role," Huang remarked, indicating that their procurement investments, already in the billions annually, are set to grow significantly. Ryu Young-ho, a senior analyst at NH Investment & Securities, suggested that this partnership emphasizes the shift of memory chips from being mere commodities to tailored solutions for specific customer needs.
In addition to SK Hynix, SK Telecom plans to establish a large-scale AI cloud in South Korea using Nvidia's technology, with its first AI data center expected to launch in 2027. Notably, both Naver and Doosan will also integrate Nvidia’s technology to bolster their own AI data center developments. Doosan, which is engaged in robotics production and develops materials for Nvidia's advanced Blackwell chips, anticipates incorporating energy solutions into Nvidia's frameworks.
Nvidia's collaboration extends to LG Group, where they are exploring innovations in mechanical systems and AI applications for humanoid robots. Furthermore, Huang noted efforts are underway with Hyundai Motor to enhance their partnership on multiple fronts, including autonomous mobility and AI-driven manufacturing initiatives.
During discussions regarding Hyundai's ambitious plans for an AI data center in Saemangeum, Huang referred to the site as South Korea’s "AI Valley," likening it to California's renowned Silicon Valley. South Korea's technology ministry is also taking steps to acquire 9,704 GPUs for an extensive AI project, which includes 2,016 of Nvidia's Vera Rubin GPUs, further underscoring the nation's commitment to AI technologies.
Meanwhile, amid an electrifying AI boom that has propelled South Korea's economy and stock market, the country’s stock index, the Kospi, saw significant fluctuations. Despite a notable surge over the past six months due to gains by tech giants like SK Hynix and Samsung, it recently dropped 8.3% following robust U.S. job reports that heightened speculation about potential Federal Reserve interest rate hikes, leading to a sell-off in global tech stocks.
Huang downplayed concerns regarding the decline in chip stock values, suggesting that it presents buying opportunities at lower prices and affirming his optimistic outlook on the future potential of AI developments. He was set to meet with Samsung's semiconductor division head later that day to discuss further collaborations.
