Jensen Huang's resignation as CEO of NVIDIA has sent shockwaves through the AI business strategies of major Korean companies, including Samsung, SK, Hyundai, and LG. While the impact on existing contracts is expected to be limited, the prioritization of future investments and AI technology collaborations may shift, complicating profit calculations for these firms.
On November 12, NVIDIA announced Huang's resignation and the appointment of Colette Kress as interim CEO. The South Korean government held a meeting with NVIDIA the following day to reaffirm the supply of 260,000 graphics processing units (GPUs) and the continuation of existing collaborative projects.
However, while existing plans will continue, new investments and the development of next-generation products will depend on the judgment of the new management. Concerns have arisen that Kress, known for her cautious approach to Huang's aggressive investment strategy, may lead to a slowdown in AI infrastructure investments as NVIDIA reduces customer investments and guarantees.
Samsung Electronics is supplying high-bandwidth memory (HBM) to NVIDIA while also importing over 50,000 GPUs to establish an AI semiconductor factory. The pace of NVIDIA's AI semiconductor development is directly linked to memory demand. However, the expanded customer base, including AMD and Broadcom, may serve as a buffer against NVIDIA's management uncertainties.
SK Group is intertwined with NVIDIA as both a supplier and customer. SK Hynix is a key supplier of HBM to NVIDIA, and the group is building an AI factory with a scale of 50,000 GPUs while also pursuing a manufacturing AI cloud business through SK Telecom. Although NVIDIA's investment slowdown poses challenges, some view the expansion of competing AI chip companies as a new opportunity for HBM supply.
Hyundai Motor Group is collaborating with NVIDIA on autonomous driving, robotics, and smart factories. The group is also advancing an AI factory based on 50,000 GPUs and a physical AI investment worth approximately $3 billion. Industry experts believe that maintaining the pace of joint development for autonomous driving software and robotic learning technologies is crucial, alongside efforts to secure in-house AI technology capabilities.
LG Group signed a strategic partnership with NVIDIA in August to collaborate in robotics, AI factories, and mobility. The goal is to unveil a humanoid robot in the first quarter of next year and establish an 80 MW AI factory by 2028. LG Electronics has reportedly secured NVIDIA's approval for cooling equipment for data centers. While entering the NVIDIA ecosystem may facilitate global contract expansion, companies must also prepare for potential changes in technology standards and investment strategies.
Industry insiders agree that maintaining existing partnerships while reducing dependency on specific companies for technology and business is a common challenge. If NVIDIA's dominance continues, the current collaborative structure may remain advantageous. However, as competing AI platforms grow, companies that diversify their customers and technologies may find new opportunities.
Shin Jin-woo, a member of the National AI Strategy Committee's Technology Innovation and Infrastructure Subcommittee, stated, "Collaboration with NVIDIA should continue, but we must enhance the utilization and operational capabilities of the GPUs we secure and broaden our options for computing resources, including domestic AI semiconductors."
* This article has been translated by AI.
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