WASHINGTON : Announced by Nvidia CEO Jensen Huang at the APEC CEO Summit in Gyeongju, South Korea, the deal will see AI chips deployed across industries, from robotics to autonomous vehicles, fueling what Huang called a new era of “intelligence as an export.” The announcement came just days after Nvidia became the world’s first company to reach a $5 trillion market valuation, highlighting its dominance in the global AI race.

While the value and timeline of the deal remain undisclosed, Huang revealed that more than 50,000 chips will be used to power data centers at South Korea’s National AI Computing Center and leading firms such as Kakao and Naver. The initiative supports South Korea’s “sovereign AI” strategy, building computing infrastructure under national control to strengthen domestic innovation and digital independence.

President Lee Jae Myung has pledged to prioritize AI investment as South Korea navigates global trade pressures and seeks to position itself as a regional AI hub. Nvidia’s collaboration aligns with this vision, enabling Korean companies to create “digital twins” of their factories, mirroring real-world operations with AI-driven precision.

The deal also unfolds against the backdrop of the US-China tech rivalry, which has sharply reduced Nvidia’s market share in China. Once accounting for over a tenth of Nvidia’s revenue, China’s AI chip demand has been curtailed by US export restrictions, prompting Chinese tech giants like Huawei and Alibaba to develop rival processors. Beijing has reportedly urged local firms to buy domestically made chips, while talks between Nvidia and China, mediated by the US, signal possible market re-entry.

Meanwhile, Nvidia continues to expand its global footprint through partnerships with the US Department of Energy, Nokia, Uber, and Stellantis, reinforcing investor confidence in its AI growth trajectory.