Nvidia CEO Jensen Huang Strikes Major Deals in South Korea
Nvidia CEO Jensen Huang visited South Korea, where the company announced multiple agreements with South Korean corporations and government entities. The deals cover chip supply, data center construction, and technology partnerships. Separately, Huang commented on US-China trade relations regarding chip exports.
Agreements with South Korean Companies
Nvidia and SK Hynix announced a multi-year technology partnership for SK Hynix to develop advanced memory types for AI data centers. Huang stated the agreement covers more than two years with extension options and that Nvidia's annual procurement from SK Hynix, valued at billions of dollars, will grow.
"The partnership spans more than two years with options to extend."
Additional agreements announced include:
- SK Telecom will build a gigawatt-scale AI cloud in South Korea using Nvidia technology, with the first data center planned for 2027.
- Naver will use Nvidia technology to build AI data centers.
- Doosan Group will use Nvidia's physical AI technology and expects its energy solution to be used in Nvidia's data center platforms.
Chip Supply Agreements
Nvidia secured agreements to supply over 260,000 advanced AI chips to the South Korean government, Samsung, LG, and Hyundai. According to Huang, these chips are designated for deployment in factories supporting the production of semiconductors, robots, and autonomous vehicles.
Huang stated this positions South Korea to "produce intelligence as a new export."
Financial terms of the deals were not disclosed.
Context of the Visit
The announcements occurred during Huang's visit to South Korea, which included meetings with executives from SK Group, SK Hynix, SK Telecom, Naver, and Doosan. Huang also spoke at an Asia Pacific Economic Cooperation (APEC) CEO summit in Gyeongju, South Korea.
Nvidia's Market Position
Nvidia's market valuation reached $5 trillion, making it the first company to achieve this milestone.
US-China Trade Relations and Export Controls
The South Korean deals coincide with Nvidia navigating 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 subject to US government restrictions.
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."