Hyundai Motor Group and NVIDIA have announced a significant collaboration to enhance the development of artificial intelligence (AI) technologies in South Korea. This partnership will establish an AI factory powered by NVIDIA’s Blackwell infrastructure, aimed at accelerating innovations in autonomous vehicles, smart factories, and robotics. The initiative is part of a broader strategy to foster a vibrant AI ecosystem in the region.
Under this collaboration, Hyundai Motor Group plans to implement a range of advanced technologies, including the establishment of a Physical AI Application Center and an AI Technology Center. These facilities will facilitate the training, validation, and deployment of AI models across various applications, from in-vehicle intelligence to factory automation. The project represents an investment of approximately $3 billion to advance the physical AI landscape in South Korea.
Investment and Collaboration Details
The partnership was formalized with the signing of a Memorandum of Understanding on October 31, 2025, between the Ministry of Science and ICT of the Republic of Korea, Hyundai Motor Group, and NVIDIA. This agreement underscores the commitment of both companies to work closely with the Korean government in developing a national physical AI cluster.
Bae Kyung-hoon, Deputy Prime Minister and Minister of Science and ICT of the Republic of Korea, emphasized the importance of advancing physical AI, stating, “For Korea to leap forward as a leading nation in AI, the advancement of physical AI is essential.” He highlighted the potential for collaboration between Korea’s manufacturing expertise and NVIDIA’s advanced AI infrastructure to accelerate innovation across industries.
Euisun Chung, Executive Chair of Hyundai Motor Group, remarked on the significance of this collaboration, saying, “As we enter a new era of AI-powered mobility and smart factories, deepening our collaboration with NVIDIA marks a pivotal step forward.” He noted that the partnership not only aims to develop advanced technologies but also to create a robust AI ecosystem in Korea.
Technological Innovations and Future Goals
Hyundai Motor Group will utilize NVIDIA’s 50,000 Blackwell GPUs to enhance AI capabilities for mobility solutions and next-generation smart factories. The collaboration will focus on integrated AI model training and validation, fostering advancements in real-time intelligence for vehicles and robotics.
NVIDIA’s DRIVE AGX Thor will serve as the “AI brain” for Hyundai’s vehicles, supporting advanced driver assistance systems and next-generation safety features. This technology aims to transform vehicles into intelligent agents capable of continuous learning and adaptation.
Additionally, Hyundai plans to leverage NVIDIA’s Omniverse platform to create digital twins of manufacturing environments. This technology will facilitate precise control, optimize production, and enable predictive maintenance, positioning Hyundai at the forefront of scalable, next-generation autonomous driving.
The integration of AI technologies is expected to revolutionize various aspects of the automotive industry, from design and manufacturing to enhanced safety features and intelligent in-vehicle experiences. Jensen Huang, founder and CEO of NVIDIA, stated, “AI will revolutionize every facet of every industry. Together with Hyundai Motor Group, we’re building intelligent cars and factories that will shape the future of the multitrillion-dollar mobility industry.”
As the automotive sector continues to evolve, the collaboration between Hyundai Motor Group and NVIDIA represents a significant step towards shaping a future defined by intelligent mobility solutions and advanced manufacturing practices.
