- South Korea will acquire 10,000 GPUs in 2024 to strengthen its AI computing infrastructure.
- U.S. AI chip regulations impact global market dynamics, but South Korea remains exempt.
- Nvidia leads the AI chip market, while OpenAI and Chinese startups explore alternatives.
As artificial intelligence becomes a key battleground for technological dominance, South Korea is stepping up its efforts by securing 10,000 high-performance GPUs this year. The initiative is part of a broader strategy to strengthen the country’s AI computing capabilities and compete globally.
Government’s AI Vision
South Korea’s acting President, Choi Sang-mok, highlighted the shifting nature of AI competition, stating that the race is no longer just between companies but entire nations.
The government is partnering with private enterprises to acquire the necessary hardware to stay ahead and ensure a robust AI ecosystem. The GPUs will be critical in launching the country’s national AI computing center to support innovation and research.
The announcement comes in the wake of new U.S. regulations restricting the export of advanced AI chips to certain countries. While South Korea remains among the 18 nations exempt from these restrictions, the policy change has reshaped the AI hardware market.
The government’s proactive move to secure GPUs ensures that potential supply chain issues do not disrupt South Korea’s AI development.
AI Chip Market Dynamics
With AI-driven technologies demanding more processing power, competition in the GPU market has intensified. Nvidia holds an 80% market share, outpacing rivals Intel and AMD.
However, leading AI firms like OpenAI are actively exploring alternatives, with reports indicating that OpenAI is finalizing its first in-house AI chip to reduce dependency on Nvidia. Meanwhile, emerging Chinese players like DeepSeek are taking a different approach by optimizing computational efficiency instead of relying solely on raw processing power.
What’s Next?
While specific details on which GPU models will be purchased remain undecided, South Korea’s Ministry of Science and ICT has confirmed that final decisions regarding budget and private-sector collaborations will be made by September.
This initiative is a strategic step toward strengthening the country’s AI capabilities and ensuring it remains competitive in the rapidly evolving global AI landscape.
