Get a Free Brand Audit Report With Wellows Claim Now!

AI Factory: NVIDIA to Supply Over 260,000 AI Chips to South Korea — What Samsung, SK, Hyundai and Others Are Planning?

  • October 31, 2025
    Updated
ai-factory-nvidia-to-supply-over-260000-ai-chips-to-south-korea-what-samsung-sk-hyundai-and-others-are-planning

South Korea will deploy over 260,000 NVIDIA Blackwell-class GPUs through government programs and major firms, aiming to build national AI factories and sovereign cloud capacity.

📌 Key Takeaways

  • Korea’s plan aggregates 260k+ NVIDIA GPUs across public and private builds.
  • Government targets 50k+ latest GPUs for sovereign clouds and research.
  • Samsung, SK Group, Hyundai Motor Group plan ~50k GPUs each.
  • NAVER Cloud expands to 60k+ GPUs for enterprise and physical AI.
  • Program aligns industry, telcos, and labs for LLMs, robotics, and AI-RAN.


Why Korea Is Building AI Factories Now

Officials frame accelerated computing as infrastructure, on par with power and broadband. The push combines sovereign clouds, corporate AI factories, and university programs to seed models, agents, and physical AI.

The plan aggregates capacity across partners to reach quarter-million plus GPUs quickly, then scale. Early phases include government data centers and cloud providers, with shared access for startups and researchers.

“Accelerated computing infrastructure becomes as vital as power grids.” — Jensen Huang, CEO, NVIDIA


Where The Chips Are Going

South Korea’s Ministry of Science and ICT will deploy 50k+ of the latest NVIDIA GPUs across a National AI Computing Center and partner clouds. That capacity underwrites sovereign LLMs and research.

Industry builds mirror the state effort. Samsung, SK Group, and Hyundai Motor Group each target about 50k GPUs for AI factories, while NAVER Cloud plans 60k+ GPUs for enterprise and physical AI tasks.

Deployment:

  • Government & sovereign clouds: 50k+
  • Samsung AI factory: 50k+
  • SK Group AI factory: 50k+
  • Hyundai Motor Group AI factory: 50k
  • NAVER Cloud expansion: 60k+

A wider ecosystem sits around this buildout, including Kakao, NHN Cloud, and research bodies like KISTI, which will link quantum and GPU systems for science workloads.


What Will Run On This Capacity

Near-term targets include foundation LLMs tuned for Korean language and domains, plus AI-RAN for 6G, digital twins, and robotics. Tooling spans CUDA-X, Omniverse, and post-training datasets like Nemotron.

Automakers will split capacity across autonomy, smart factories, and on-device AI. Internet platforms will drive enterprise and physical AI services, with sovereign clouds lowering access barriers for startups and labs.

“Expanding national AI infrastructure with NVIDIA is an investment in future industries.” — Bae Kyung-hoon, Deputy Prime Minister and Minister of Science and ICT


The Numbers, Partners, And Timeline

Public statements detail 260k+ accelerators across government and anchor firms, with purchase volumes tied to Blackwell-generation parts. Financial terms and precise delivery schedules were not disclosed.

Coverage highlights coordination with Samsung, SK Group, Hyundai Motor Group, and NAVER Cloud, plus engagements with Kakao and NHN Cloud on sovereign capacity. The program was announced alongside APEC events in Korea.

What to watch next

  • Procurement cadence and site go-lives
  • Interconnect and scheduling performance at scale
  • Shared access for startups and universities
  • Early wins in AI-RAN, digital twins, and robotics


Implications For The AI Supply Chain

This is a regional hub strategy, pairing local fabs, automakers, and platforms with high-end compute. It positions Korea for faster training cycles, broader inference capacity, and deeper integration of AI into manufacturing.

It also signals continued diversification of demand outside China, with large national programs absorbing next-gen accelerators. Expect follow-on buys, software investments, and fresh research alliances as clusters come online.


Conclusion

South Korea is turning AI factories into national infrastructure, spreading Blackwell-class GPUs across state clouds and industrial champions. The early footprint already tops a quarter-million chips.

If deployments hit schedule and teams share access broadly, the country can accelerate LLMs, networks, and robotics at home, then export intelligence as a capability across sectors.


For the recent AI News, visit our site.


If you liked this article, be sure to follow us on X/Twitter and also LinkedIn for more exclusive content.

Was this article helpful?
YesNo
Generic placeholder image
Articles written 884

Khurram Hanif

Reporter, AI News

Khurram Hanif, AI Reporter at AllAboutAI.com, covers model launches, safety research, regulation, and the real-world impact of AI with fast, accurate, and sourced reporting.

He’s known for turning dense papers and public filings into plain-English explainers, quick on-the-day updates, and practical takeaways. His work includes live coverage of major announcements and concise weekly briefings that track what actually matters.

Outside of work, Khurram squads up in Call of Duty and spends downtime tinkering with PCs, testing apps, and hunting for thoughtful tech gear.

Personal Quote

“Chase the facts, cut the noise, explain what counts.”

Highlights

  • Covers model releases, safety notes, and policy moves
  • Turns research papers into clear, actionable explainers
  • Publishes a weekly AI briefing for busy readers

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *