Nvidia’s Sweeping AI Partnerships Signal South Korea’s Tech Ambitions
Nadia Petrov | AA
Nvidia has announced gigawatt-scale AI cloud projects with SK Telecom and NAVER in South Korea, aiming to bolster the country’s AI infrastructure and leadership in the global semiconductor landscape.
US chip giant Nvidia has unveiled a suite of transformative partnerships in South Korea, aimed at reshaping the country’s artificial intelligence (AI) infrastructure. Central to these plans is a collaboration with SK Telecom to construct a gigawatt-scale AI cloud designed to support a wide array of industries and enterprises nationwide. Announced on Monday, the project is a cornerstone in South Korea’s efforts to establish itself as a global leader in AI and semiconductor technologies.
SK Telecom plans to leverage Nvidia's DSX platform for this ambitious initiative, with the first AI factory anticipated to become operational in 2027. Nvidia emphasized that the AI cloud will be built on its full-stack reference architecture, integrating accelerated computing, systems, software, and partner technologies. The aim is to improve time-to-market efficiency and energy optimization throughout the cloud’s lifecycle.
What is Nvidia building with SK Telecom in South Korea?
Nvidia and SK Telecom are developing a gigawatt-scale AI cloud in South Korea, expected to launch its first factory in 2027. The project will utilize Nvidia's DSX platform and full-stack architecture.
“Telecom networks are becoming national AI infrastructure,” said Jensen Huang, Nvidia’s founder and CEO, in a statement describing the project’s potential to transform SK Telecom’s role in the AI cloud ecosystem. Echoing this enthusiasm, SK Group Chairman Chey Tae-won noted that the collaboration ensures the company will have full-stack AI infrastructure capabilities "from chips to data center operations."
Nvidia and SK Group are also set to explore further research opportunities in next-generation AI factory architectures. Their joint efforts will focus on breakthroughs in accelerated computing, memory technology, and efficient data center operations to support South Korea’s expanding digital economy.
NAVER Deepens AI Commitments with Nvidia Partnership
In addition to its partnership with SK Telecom, Nvidia announced a separate collaboration with NAVER, South Korea’s leading internet company. NAVER plans to expand its AI infrastructure using the Nvidia DSX platform. The initiative begins with 55 megawatts of capacity at NAVER’s GAK Sejong data center, with ambitions to eventually scale to gigawatt levels.
NAVER will integrate Nvidia’s full-stack AI platforms, models, and software into its operations to cultivate advancements in regional AI models. Specifically, the company aims to enhance offerings like its next-generation HyperCLOVA X models, Seoul World Model development, and agentic AI services. Nvidia described the GAK Sejong data center upgrade as a next-generation hyperscale facility designed for cutting-edge AI and cloud services.
These developments coincide with South Korea’s broader push to solidify its standing in the global AI and semiconductor supply chain. The country hopes to leverage domestic expertise and growing market demands for advanced memory and data center components as part of this strategy.
The surge in AI-related projects has also sparked discussions in South Korea surrounding profit-sharing mechanisms for workers in the semiconductor sector. Recent debates at major chip companies have emphasized the need to link bonuses and profit-sharing agreements to record-breaking earnings, reflecting broader questions about labor equity and the distribution of technological gains.
Scaling AI: Implications for Cities and Urban Leadership
The partnerships between Nvidia, SK Telecom, and NAVER underscore a critical transition in urban and national infrastructure development: the integration of AI at a foundational level. For municipal leaders, this transformation presents both opportunities and challenges. Cities will increasingly rely on AI frameworks to address urban planning, public safety, mobility, and sustainability. South Korea’s approach,scaling AI capabilities through robust partnerships and hyperscale data centers,offers a blueprint for other nations hoping to achieve similar advancements.
However, the emphasis on sovereign AI infrastructure also raises questions about equitable economic benefits and workforce impacts. As South Korea continues its push for leadership in AI and semiconductors, policymakers must engage in transparent discussions about labor relations, data governance, and the broader societal implications of these technologies. Municipal leaders worldwide will need to grapple with how to incorporate AI responsibly, balancing innovation with equity in ways that enhance urban life for all residents.
Questions That Matter
What is the capacity of NAVER's initial AI expansion?
NAVER is initially expanding its AI infrastructure with 55 megawatts of capacity at the GAK Sejong data center. This expansion is part of their collaboration with Nvidia to eventually scale to gigawatt levels.
Who is SK Telecom partnering with for AI development?
SK Telecom is partnering with Nvidia to build a gigawatt-scale AI cloud in South Korea. This collaboration aims to establish a robust AI infrastructure by 2027, leveraging Nvidia's DSX platform and full-stack architecture.