Hyundai Motor Group and NVIDIA have entered into a joint investment to build an AI factory in South Korea, committing approximately $3 billion and 50,000 NVIDIA Blackwell GPUs for training, validation, and deployment of AI models.
The partnership, formalized through a Memorandum of Understanding signed by the Ministry of Science and ICT, Hyundai Motor Group, and NVIDIA, aligns with South Korea’s national “physical AI cluster” initiative to strengthen AI infrastructure that directly interacts with the physical world.
The AI factory will leverage NVIDIA’s Blackwell architecture and its full‑stack ecosystem—including CUDA, Omniverse, Isaac, and DRIVE AGX Thor—to accelerate autonomous vehicle technology, smart factory automation, and robotics across Hyundai’s vehicle and manufacturing portfolio.
This collaboration deepens a prior relationship that began earlier in 2025, when Hyundai adopted NVIDIA’s software platforms for AI‑driven mobility solutions. The new partnership expands the scope to co‑innovation and joint development of AI chips and software tailored to automotive and industrial applications.
NVIDIA’s investment in South Korea totals over 260,000 GPUs supplied to entities such as Samsung, SK Group, and Naver, positioning the company as a key player in the country’s rapidly growing AI‑enabled manufacturing sector and reinforcing its strategy to extend the Blackwell platform beyond data centers.
The deal also includes initiatives to nurture local AI talent, supporting South Korea’s goal of becoming a global leader in physical AI and providing a skilled workforce for the emerging industry.
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