Nvidia will supply over 260,000 advanced AI chips to South Korea’s government and leading corporations, including Hyundai, Samsung, and LG. The chips will be integrated into manufacturing systems across industries ranging from robotics and semiconductors to autonomous vehicles.
The announcement capped an eventful week for the company, which became the first in history to surpass a $5 trillion valuation. It also coincided with renewed optimism about China-U.S. trade relations, raising the possibility that Nvidia could soon expand chip exports to China.
Speaking at a CEO forum held alongside the Asia-Pacific Economic Cooperation summit in South Korea, Nvidia’s CEO Jensen Huang said the partnership would allow the companies to build “digital twins” of their global factories. The initiative is part of Nvidia’s broader strategy to embed AI into a wider range of industries and services.
South Korea plans to use part of the chip supply—over 50,000 chips—to establish a national computing infrastructure under a concept known as “sovereign AI.” The chips will support national data centers and facilities operated by companies such as Kakao and Naver.
The deals come as Nvidia navigates ongoing trade tensions between Washington and Beijing. China accounted for more than ten percent of the company’s revenue in 2024, but U.S. export restrictions have sharply reduced its presence there. “We once held 95 percent of China’s AI market share. Now it’s zero,” Huang noted during the summit.
Following his meeting with China’s President Xi Jinping, U.S. President Donald Trump told reporters that Beijing would begin discussions with Nvidia over possible chip sales. Trump added that while negotiations would take place directly between the company and Chinese officials, Washington would act as a neutral “referee.”
Huang expressed a desire to resume chip sales to China, particularly of Nvidia’s flagship Blackwell processors, but noted that any decision rests with the White House. The U.S. currently restricts exports of Nvidia’s most powerful AI chips to China. Huang said he hopes future talks will lead to new policies allowing those products to reenter the Chinese market, calling cooperation beneficial to both nations.
Nvidia’s chips are designed in the U.S. but produced mainly in Asia through partners such as TSMC, Samsung, and SK Hynix. TSMC manufactures Nvidia’s most advanced Blackwell chips, while Samsung supplies components for its scaled-down H20 processors tailored for China.
Meanwhile, China continues developing its own alternatives. Alibaba and Huawei have introduced chips they claim can compete with Nvidia’s, and Beijing has reportedly instructed domestic firms to favor local suppliers.
As China intensifies its push to outcompete American tech supremacy, U.S. firms like D-Wave Quantum Inc. (NYSE: QBTS) are also working to introduce even more cutting-edge tech solutions to the global market.
NOTE TO INVESTORS: The latest news and updates relating to D-Wave Quantum Inc. (NYSE: QBTS) are available in the company’s newsroom at https://ibn.fm/QBTS
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