Hyundai Motor Group and NVIDIA have expanded their partnership with plans for an AI factory based on Nvidia’s Blackwell architecture to support autonomous driving, smart manufacturing and robotics.
The South Korean major said the collaboration is moving into a new phase, shifting from adopting software platforms and infrastructure to jointly developing core physical AI technologies.
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The Ministry of Science and ICT of the Republic of Korea, Hyundai Motor Group and NVIDIA signed a memorandum of understanding today (31 October) to formalise the partnership.
Under the expanded alliance, the work will span AI capabilities for mobility systems, next-generation smart factories and on-device semiconductor advances to bolster Hyundai Motor Group’s future technology stack.
The initiative includes integrated AI model training, validation and deployment at scale, using a planned 50,000 NVIDIA Blackwell GPUs.
Hyundai Motor Group executive chair Euisun Chung said: “As we enter a new era of AI-powered mobility and smart factory, deepening our collaboration with Nvidia marks a pivotal step forward.
“Together, we are not only building advanced technologies but also laying the foundation for a robust AI ecosystem in Korea—one that fosters innovation, nurtures talent, and positions us at the forefront of global AI leadership.”
Aligned with South Korea’s national programme to establish a physical AI cluster, Hyundai Motor Group and Nvidia will work with government authorities to speed up ecosystem development.
The effort comprises an investment of about $3bn to support Korea’s physical AI infrastructure.
Planned activities include setting up Hyundai Motor Group’s Physical AI Application Center, an Nvidia AI Technology Center, and regional physical AI data centres.
Nvidia founder and CEO Jensen Huang said: “AI will revolutionise every facet of every industry. In transportation alone — from vehicle design and manufacturing to robotics and autonomous driving — NVIDIA’s AI and computing platforms are transforming how the world moves.
“Together with Hyundai Motor Group — Korea’s industrial powerhouse and one of the world’s top mobility solutions providers— we’re building intelligent cars and factories that will shape the future of the multitrillion-dollar mobility industry.”
The collaboration is also expected to facilitate exchanges with Nvidia engineers and technicians to help train Korea’s next generation of physical AI specialists.
Hyundai Motor Group said its Nvidia Blackwell-based AI factory will underpin all stages of development, connecting in-vehicle AI, autonomous driving, factory automation and robotics within a single, integrated environment.
