Nvidia CEO Jensen Huang has declared Korea a key player in the growing artificial intelligence (AI) industry, highlighting its unique combination of manufacturing, semiconductor, and software expertise. During a press briefing in Seoul, Huang stated that Korea is poised to become a leader in the next phase of AI development, especially in physical AI and robotics.
Huang's positive outlook comes as discussions about the sustainability of the AI market intensify. He dismissed concerns about an AI bubble, asserting that the industry's growth is just beginning. "The market reaction is wrong," he remarked, emphasizing that AI infrastructure is the crucial next step following advancements in electricity, the internet, and computing. This infrastructure, he noted, requires significant investment and energy, which he believes Korea can supply.
Korea's Competitive Edge
Huang pointed to Korea's strengths, particularly its leadership in nuclear energy technology, which he called a major asset for future AI advancements. "Korea is incredibly strong in the energy sector," he said, suggesting this capability will support the substantial capital needs of AI infrastructure development. He urged the government to make it easier for corporations to access capital, which he sees as vital for the growth of the AI ecosystem.
He also announced ambitious plans for collaboration with key Korean companies. His partnerships with SK hynix and SK Telecom could lead to projects valued at hundreds of billions of dollars. "From energy to semiconductors, infrastructure, robotics, and applications, Korea is working with Nvidia at every layer of the AI ecosystem," he noted.
The collaboration with Naver stands out, as Huang revealed plans to build a 200-megawatt AI cloud, with ambitions to expand this capacity to 1 gigawatt in the future. He pointed out that constructing such an AI factory could require around $60 billion, highlighting the scale of investment needed in this sector.
Strategic Partnerships with Korean Giants
Huang emphasized the importance of partnerships with industry leaders like SK hynix and Samsung Electronics. He credited SK hynix for enabling Nvidia to develop its AI supercomputers, noting that the company’s memory technology will be essential for future products, including advanced AI systems and robotics processors. Huang expressed confidence in the rising demand for AI memory, suggesting that SK hynix's plans to double its production capacity by 2030 may still not meet market needs.
His long-standing relationship with Samsung was also highlighted as they work on an innovative ASIC project together. He outlined a broad approach to collaboration across various sectors, from memory to autonomous driving with Hyundai Motor, further illustrating Nvidia’s deep integration into Korea’s technology landscape.
Addressing Market Concerns
In response to recent market concerns, Huang stated that Nvidia, which holds 80% of the AI market share, continues to experience nearly 100% year-over-year growth. He attributed this success to the practical utility of AI, saying, "AI has finally become useful," and emphasized that businesses are eager to invest in AI technologies that enhance their operations.
Huang pointed out that the AI industry is now profitable, which he believes will draw in more investment. He predicted that AI will evolve into a ubiquitous utility, similar to electricity and the internet, underscoring its necessity across all sectors of society.
Huang dismissed the recent decline in stock prices as mere noise, encouraging investors to see it as an opportunity. "Korea is a fantastic place to invest in the future of AI," he stated confidently, reflecting his strong belief in the country’s potential to lead in this significant industry.
The stories that move AI & crypto markets — before the market reacts.
Free. 7am ET. Five stories. 62,400 readers.
