Seoul: Korea has secured a critical opportunity to ascend as one of the world's top three artificial intelligence (AI) powers. Nvidia, a dominant force in the global AI semiconductor market with a 90 percent share, has agreed to establish an "AI alliance" with major Korean companies including Samsung Electronics, SK, Hyundai Motor, and Naver. As part of this agreement, Nvidia will supply 260,000 of its latest graphics processing units (GPUs), valued at up to 14 trillion won, to both the Korean government and private sector on a priority basis.
According to Yonhap News Agency, GPUs are the essential hardware driving AI development and are currently in short supply worldwide. Korea, with only about 45,000 Nvidia GPUs at present, will see its total volume significantly increase with the new units, positioning it among the top three globally. This move is unprecedented, as Nvidia has never allocated as many as 260,000 Blackwell GPUs to a single country before. This development provides Korea with the potential to close the AI gap with the United States and China, marking what analysts describe as a turning point in AI infrastructure.
The alliance may also enable Korea to lead in "physical AI," which involves AI operating in the real world through robotics, autonomous vehicles, or smart factories. Korean companies like Samsung and Hyundai Motor are planning to develop AI factories utilizing Blackwell-based systems, aiming to become leaders in smart manufacturing, mobility, and robotics.
The collaboration's potential impact is considerable. By merging Korea's strengths in semiconductors, automobiles, batteries, and shipbuilding with high bandwidth memory chips and Nvidia's cutting-edge AI processors, it could create powerful synergies. Industry officials suggest this deal could redefine the global AI ecosystem, positioning Korea as a future hub for AI industries. Nvidia CEO Jensen Huang highlighted Korea's "software, manufacturing, and AI capabilities," indicating a strong sense of optimism.
However, this marks just the beginning. Transforming this opportunity into leadership will require meticulous planning and robust execution. The government must provide financial and tax incentives to motivate companies to invest in AI infrastructure and research and development. Reforms in labor regulations that restrict working hours in AI research and other barriers to corporate innovation will be necessary. Additionally, expanding electricity grids, securing specialized talent, and constructing data centers are crucial tasks that lie ahead.
If both the public and private sectors collaborate with a national-level commitment, Korea's aspiration to become a global AI hub could transition from a distant goal to an achievable reality.