San francisco: South Korean conglomerates and global technology companies, including Nvidia Corp., have agreed to engage in cooperation projects valued at $950 billion, a senior presidential official announced.
According to Yonhap News Agency, the projects entail a significant deal in which SK Group will supply $750 billion worth of high-performance semiconductors to various global tech firms, including Nvidia. This agreement was formalized during a high-profile meeting in San Francisco, which saw participation from leaders of global tech companies and South Korean conglomerate heads such as Samsung Electronics Co. Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won. Prominent figures like OpenAI CEO Sam Altman and Nvidia CEO Jensen Huang were also in attendance.
The meeting also resulted in an agreement among South Korean and global tech firms to invest jointly in large-scale AI data centers with a combined capacity of 5 gigawatts and 2 million graphics processing units (GPUs). Additionally, South Korea's internet portal Naver plans to establish global AI factories valued at $10 billion through a strategic investment agreement with Nvidia and an infrastructure supply arrangement with Canadian investment management firm Brookfield Corp.
In a significant announcement at the meeting, President Lee Jae Myung unveiled a vision to position South Korea as a reliable production base and supply partner for AI semiconductors, with aspirations to become a key player in the global AI supply chain. This vision, dubbed the "San Francisco AI Declaration," aims to leverage South Korea's competitiveness and production capabilities in memory semiconductors to establish the nation as a trustworthy AI chip production base and supply chain partner.
The declaration coincides with Seoul's efforts to capitalize on the burgeoning global demand for semiconductors, fueled by the AI boom. South Korea aims to bolster its status as a major chip supply hub. Last month, the country announced three megaprojects involving investments totaling over 4,000 trillion won ($2.73 trillion) in a semiconductor production cluster, physical AI, and AI data centers.
President Lee emphasized South Korea's commitment to developing a world-class AI hub that will provide essential infrastructure for the global AI ecosystem. He envisaged South Korea as a country that not only supplies but also effectively utilizes AI, creating new markets for AI technology applications in sectors like manufacturing and logistics.
The South Korean president, currently on a five-nation trip, arrived in San Francisco earlier and plans to travel to three South American countries, including Chile and Argentina, before departing for Brazil on Saturday.