Nvidia has announced a major deal to supply more than 260,000 of its most advanced AI chips to South Korea’s government and leading corporations, marking a significant step in the country’s bid to become a regional artificial intelligence hub.

The agreement includes chip supplies to government AI initiatives and major Korean firms such as Samsung Electronics, SK Group, Hyundai Motor Group, and Naver. The deal underscores Nvidia’s rapid global expansion as demand for AI accelerates, helping it recently become the world’s first $5 trillion company.

South Korean President Lee Jae-myung, who took office in June and has prioritised AI development to drive economic growth, called the partnership a key milestone. Nvidia CEO Jensen Huang said Korea is positioned to lead in producing “intelligence as a new export,” likening its future AI capacity to its traditional strengths in shipbuilding, chips, and electronics.

The announcement followed a meeting between Huang, President Lee, and top corporate leaders on the sidelines of the APEC summit in Gyeongju.

Nvidia’s push into South Korea comes as it faces reduced access to China amid ongoing U.S.–China trade tensions and repeated U.S. restrictions on chip exports to Beijing. The company is now expanding aggressively in markets less affected by geopolitical friction, targeting industries such as automotive, retail, and manufacturing.

Under the plan, the South Korean government will acquire more than 50,000 Nvidia chips to strengthen national AI infrastructure. Samsung, SK Group, and Hyundai Motor Group will each deploy up to 50,000 chips, while Naver will purchase around 60,000 units. These chips will support smart factory systems, vehicle and semiconductor manufacturing, AI research, and national computing centres.

South Korea also plans to work with internet giants Naver and Kakao to scale cloud and computing capacity through the National AI Computing Center initiative. Hyundai, meanwhile, will collaborate with Nvidia to create a supercomputer for autonomous driving, robotics, and industrial automation.

The deal positions South Korea to accelerate its AI ambitions while allowing Nvidia to deepen its foothold in one of Asia’s most technologically advanced economies.