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Jensen Huang, chief executive officer of Nvidia Corp., during the keynote address at the Nvidia GTC (GPU Technology Conference) in Washington, DC, US, on Tuesday, Oct. 28, 2025.
Kent Nishimura | Bloomberg | Getty Images
In a move signaling continued dominance in the artificial intelligence landscape, Korean semiconductor behemoth Samsung announced Thursday its plans to significantly bolster its chip manufacturing capabilities through the deployment of a 50,000 Nvidia GPU cluster. This strategic investment aims to enhance Samsung’s production of advanced chips destined for both mobile devices and the rapidly expanding robotics sector.
The ambitious “AI Megafactory” project, as Samsung terms it, underscores the escalating demand for AI acceleration in diverse applications. While specific timelines for the facility’s construction remain undisclosed, the sheer scale of the GPU deployment highlights Samsung’s commitment to leveraging AI to optimize its manufacturing processes and potentially develop new AI-powered chip designs. The company plans to utilize these advanced chips within their own platforms, especially for on-device AI in their mobile phone division.
This collaboration represents the latest coup for Nvidia, solidifying its position as the linchpin in powering the AI revolution. The company’s GPUs are increasingly viewed as indispensable for developing and deploying sophisticated AI algorithms and models.
The Samsung announcement follows Nvidia CEO Jensen Huang’s keynote address earlier this week, where he unveiled collaborative efforts with a diverse range of industry leaders. Huang’s presence in South Korea, including meetings with Samsung Chairman Lee Jae-yong, further solidified the partnership. Nvidia has indicated that other Korean conglomerates, including SK Group and Hyundai, are also making substantial investments in GPU infrastructure, affirming the nation’s commitment to becoming a global AI powerhouse.
“We’re working closely with the Korean government to support its ambitious leadership plans in AI,” Raymond Teh, Nvidia’s senior vice president of Asia-Pacific, stated, emphasizing the strategic importance of the region.
These partnerships lend further credence to Huang’s recent declaration that Nvidia anticipates a staggering $500 billion in potential revenue from its current Blackwell GPU architecture and its upcoming Rubin generation. This projection fueled Nvidia’s meteoric rise, propelling the company to become one of the few companies to achieve a market capitalization surpassing $5 trillion.
Nvidia representatives indicated that their collaboration with Samsung will focus on optimizing the Korean company’s cutting-edge chipmaking lithography platforms to maximize the performance of Nvidia’s GPUs. This optimization is expected to yield a significant performance boost for Samsung. Furthermore, Samsung plans to integrate Nvidia’s Omniverse simulation software into its workflows.
Beyond being a customer, Samsung also assumes a critical role as a key supplier to Nvidia. Samsung’s expertise in high-bandwidth memory (HBM) is vital for Nvidia’s AI chips, which require massive memory bandwidth to operate efficiently. Both companies will collaborate to refine Samsung’s HBM4 memory technology, specifically tailoring it for use in Nvidia’s future AI chip designs. This collaboration promises to further enhance the capabilities and performance of AI accelerators, addressing the ever-growing memory demands of advanced AI models.
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