NVIDIA has reached a significant AI agreement with a South Korean tech giant: deploying 260,000 Blackwell chips to create Asia's first "Industrial AI Cloud"!

NVIDIA is advancing a milestone AI infrastructure deployment plan in South Korea, supplying over 260,000 AI chips to the country's largest tech companies. According to media reports, NVIDIA has reached an agreement with the South Korean Ministry of Science and ICT, as well as Samsung Electronics, Hyundai Motor Group, and SK Group, to provide over 260,000 AI chips to kickstart South Korea's AI projects. NVIDIA did not disclose the financial terms of the deal. NVIDIA CEO Jensen Huang attended the APEC CEO Summit held in South Korea on Friday. This visit continues his global promotion of AI computing applications, aiming to further enhance demand for the company's products. Samsung, Hyundai, and SK Group each deploy over 50,000 chips Under the agreement, the South Korean government will build what is called "sovereign AI"—a government-controlled computing infrastructure. In the future, over 50,000 of NVIDIA's latest AI accelerators will be deployed in data centers, including the National AI Computing Center and facilities of companies like Kakao, Naver, and NHN Cloud. The scale of this deployment reflects South Korea's strategic ambitions in the AI field. By establishing a self-controlled computing infrastructure, the South Korean government aims to secure a favorable position in the global AI competition while providing strong technical support to local tech companies. At the corporate level, South Korea's tech giants have also set ambitious plans. As one of the world's largest semiconductor manufacturers, Samsung Electronics will build an "AI factory" with over 50,000 NVIDIA chips. Meanwhile, Hyundai Motor Group has also committed to purchasing a similar number of processors based on NVIDIA's Blackwell architecture to develop the company's AI models and advance its progress in smart manufacturing and autonomous driving. Asia's first "Industrial AI Cloud" In collaboration with SK Group, NVIDIA's layout focuses more on the industrial application field, planning to create a groundbreaking project. SK Group, which includes SK Telecom and SK Hynix, is deploying a series of NVIDIA RTX Pro 6000 Blackwell server chips. NVIDIA stated that this move aims to build Asia's first "Industrial AI Cloud." This facility will focus on robotics and other applications of AI in the physical world, marking a further penetration of AI technology from the cloud into physical industrial scenarios. Samsung seeks to supply NVIDIA with HBM4 chips Notably, the collaboration between NVIDIA and South Korean giants is not one-sided. Samsung Electronics announced on Friday that it is in "close discussions" to supply NVIDIA with its next-generation high-bandwidth memory (HBM) chips, HBM4. This development reveals the mutually beneficial relationship between the two parties. In the race for AI chips, Samsung is not only a major customer of NVIDIA chips but is also actively seeking to become a key supplier, striving to catch up with competitors in the fiercely competitive high-performance memory chip market. This further highlights South Korea's pivotal position in the global semiconductor supply chain. $500 billion strong revenue expectations The AI boom over the past two years has driven NVIDIA's sales and market value to soar. Earlier this week, NVIDIA became the first company to surpass a market value of $5 trillion. According to a previous article from Wall Street Insight, on October 28th, NVIDIA CEO Jensen Huang revealed at the GTC conference that the company has "visibility" to achieve a cumulative data center business revenue of $500 billion during the period from 2025 to 2026. This revenue expectation will cover its Blackwell and next-generation Rubin architecture products. In response, Goldman Sachs commented that although their forecast for NVIDIA's fiscal year 2026 is already about 7% higher than the market consensus, based on the latest management comments, they believe their forecast still has a "further upward tendency." The improvement in long-term revenue visibility is an "incremental positive factor" for NVIDIA's stock price, reaffirming their "buy" rating