South Korea emerges as a global AI powerhouse
Nvidia will deliver more than 260,000 of its most advanced AI chips to South Korea’s government and major companies including Samsung, LG, and Hyundai. The chips will power factories that produce semiconductors, robots, and self-driving cars. Chief executive Jensen Huang said this means South Korea can now “export intelligence as a new product.” He did not reveal the value of the deals.
This announcement crowns a landmark week for Nvidia. On Wednesday, it became the first company ever valued at $5 trillion. A day later, signs emerged that tensions between Washington and Beijing might ease, raising hopes that chip exports to China could resume.
During a CEO summit held alongside the Asia-Pacific Economic Cooperation meeting in Gyeongju, Huang said the new chips will allow companies to create “digital twins” of factories worldwide. The agreements highlight Nvidia’s global ambition to expand AI infrastructure and integrate artificial intelligence deeper into products and services.
Nvidia strengthens its global AI influence
Nvidia’s international partnerships helped it reach the historic $5 trillion milestone. The company is moving quickly to secure its role at the centre of the global AI race.
Yet the South Korean deals come as Nvidia faces fallout from the ongoing US-China trade conflict. China once made up more than ten percent of Nvidia’s revenue, but export restrictions have cut off access to its most powerful chips.
“We used to have 95% of the AI business in China. Now we’re at zero,” Huang said in Gyeongju. “I’m disappointed by that.”
Renewed hopes for Nvidia’s China relations
After meeting Chinese President Xi Jinping, former US President Donald Trump said Beijing will start talks with Nvidia about chip sales in China. Trump called the discussions a matter between China and Nvidia but said Washington would act as a “referee.”
On Friday, Huang said he would like to sell Nvidia’s state-of-the-art Blackwell chips to China, though the final decision lies with the US President. Current export controls ban the sale of Nvidia’s most advanced AI chips to Chinese customers.
Huang gave no updates on the talks but said he remains hopeful. “It’s in America’s interest to keep access to the China market,” he said. “And it’s in China’s interest to welcome American technology. We want American innovation to set the global standard.”
South Korea positions itself as an AI superpower
South Korea already leads in semiconductor and automotive production. Now it aims to become a regional centre for artificial intelligence.
Huang described the country as ideal for AI growth thanks to its energy resources, land availability, and advanced factory infrastructure. President Lee Jae Myung pledged to prioritise AI investment after taking office amid pressure from US tariffs.
With Nvidia’s backing, South Korea will build national computing infrastructure under a concept called “sovereign AI.” More than 50,000 Nvidia chips will power data centres at the National AI Computing Center and companies like Kakao and Naver.
Asia’s supply chain strengthens Nvidia’s rise
Nvidia depends heavily on the tight manufacturing networks across Asia. The company designs chips but outsources production to firms such as Samsung, SK Hynix, and TSMC.
TSMC makes Nvidia’s most advanced AI chips, including the flagship Blackwell series. Samsung produces components for the H20 processor, a scaled-down version made to comply with US export rules for China.
Some US security experts and lawmakers warn that selling advanced AI chips to China could enhance its military capabilities. In response, China has accelerated domestic innovation. Huawei and Alibaba have launched their own AI chips, claiming they can rival Nvidia’s designs.
Beijing has also reportedly urged local companies to stop buying Nvidia products and instead support domestic chipmakers.
“We deeply respect China’s technological capabilities,” Huang said on Friday.
Investors reward Nvidia’s global strategy
Nvidia’s share price soared this week following a series of major deals. The company announced partnerships with the US Department of Energy, Nokia, Uber, and Stellantis, reassuring investors about AI’s long-term profitability.
Speculation about renewed chip exports to China after Trump’s meeting with Xi further lifted Nvidia’s market value. The company’s expanding global strategy shows its determination to lead the AI era while navigating a complex geopolitical landscape.
