Nvidia has secured agreements to supply over 260,000 of its advanced artificial intelligence (AI) chips to the South Korean government, Samsung, LG, and Hyundai. These chips are designated for deployment in factories, supporting the production of semiconductors, robots, and autonomous vehicles. The deals were announced by Nvidia CEO Jensen Huang, who noted that this development positions South Korea to "produce intelligence as a new export." The financial terms of these South Korean deals were not disclosed.
Global Expansion and Market Valuation
The agreements in South Korea are part of Nvidia's ongoing strategy to expand AI infrastructure globally and integrate AI into various products and services. This week, Nvidia's market valuation reached $5 trillion, making it the first company to achieve this milestone. Jensen Huang, speaking at an Asia Pacific Economic Cooperation (APEC) CEO summit in Gyeongju, South Korea, also stated that the chips would enable companies to create "digital twins" of factories worldwide.
US-China Trade Relations and Export Controls
These South Korean deals coincide with Nvidia navigating the implications of the US-China trade dispute. China historically accounted for over 10% of Nvidia's revenue last year, but access to Nvidia's chips has been a point of contention with the US government. Huang stated on Friday that Nvidia's share of the AI business in China had decreased from 95% to 0%.
Following a meeting between former President Trump and Chinese President Xi, Trump indicated on Thursday that Beijing would hold discussions with Nvidia regarding chip sales in China. Trump characterized the US government's role in these discussions as a "referee." Huang expressed a desire to sell Nvidia's Blackwell chips to China, noting that such a decision would rest with the US President. The US currently imposes export controls on Nvidia's most advanced AI chips to China. Huang stated he hopes for new policies that would allow chip exports to China, asserting that it is "in the best interest of America to have the China market" and "in China's interest to have an American company bring technology to the country."