Nvidia CEO to unveil AI chip supply deals with Samsung, SK Group

Nvidia CEO Jensen Huang is set to announce new agreements to supply AI chips to major South Korean firms, including Samsung Electronics, Hyundai Motor Group, and SK Group, during his visit to South Korea this week.

Nvidia, a US-based chip designer, is seeking to grow its presence in South Korea as trade tensions with China have sharply limited its business in that market.

SK Group, which includes chipmaker SK Hynix, plans to use Nvidia chips in a planned 7 trillion won (US$4.9 billion) AI data center.

The announcements are expected before Huang attends the APEC CEO Summit in Gyeongju on October 31.

South Korea, a key player in global memory chip production, aims to secure 200,000 high-performance GPUs by 2030 as part of a national push in AI computing.

Nvidia’s share in the Chinese market has dropped from 95% to zero after recent restrictions from Beijing.

Neither Nvidia nor the South Korean companies involved commented on the reported agreements.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

South Korea’s 200,000 GPU target faces power and cooling infrastructure gaps

South Korea plans to secure 200,000 high-performance GPUs by 2030, which needs big builds beyond chip buys. Domestic data centers could reach 637 by 2029, driving 49,397 megawatts of demand, equal to about 30 nuclear plants 1.
Air cooling falls short for AI servers. Cooling takes 40% to 50% of total energy in South Korean data centers 1. Operators are moving to immersion cooling and other liquid systems, with LG and SK Innovation partnering on integrated energy and cooling 2.
Officials are building an AI-powered intelligent grid to handle renewable swings and improve demand forecasts 3. From 2025, buildings must get Zero Energy Building certification, which covers structures that produce as much energy as they use each year, raising efficiency requirements 1.

Data center infrastructure vendors can target SK Group’s planned $4.9 billion AI facility build

SK Group plans a 7 trillion won AI data center in Ulsan, worth about $4.9 billion 4 5. Vendors can pitch high-efficiency chillers. Direct-to-chip cooling systems (liquid loops connected to processors) also fit. So do coolant distribution units (equipment that circulates and manages cooling fluids). AI-based energy management sits on the list, and Korean firms are building products 6 2.
Investors should watch five microgrid projects (local electricity networks that can operate independently) that will get more than 200 billion won in government funding 3. A planned 3 gigawatt data center in Jeollanam-do Province aims to break ground in 2025 7. These builds may add backup power with batteries or fuel cells 2. Peak-load reduction technologies may follow 2. Waste heat reuse can also play a role 2.
Networking makers can chase work tied to the Jeollanam-do AI data center 7. The plan covers regional fiber and international bandwidth to support AI workloads 7.