Hyundai Motor Group partners with NVIDIA to build AI factory and advance mobility innovation

Hyundai Motor Group and NVIDIA are creating a $3B AI factory in Korea using 50,000 Blackwell GPUs to power smart factories, autonomous driving, and robotics development

Hyundai Motor Group and NVIDIA have entered into an agreement that may become one of the defining technological milestones in South Korea. The two companies are joining forces to build a large-scale AI factory based on NVIDIA’s Blackwell architecture, backed by the Korean government. The project focuses on developing so-called “physical AI” — the convergence of artificial intelligence with real-world manufacturing, mobility, and robotics.

The initiative involves deploying 50,000 NVIDIA Blackwell GPUs and an investment of around $3 billion. The new infrastructure will allow Hyundai Motor Group to integrate model training, validation, and deployment into a single process covering vehicles, smart factories, and autonomous robots.

As part of the partnership, the companies will establish an AI Application Center, an AI Technology Center, and a network of data centers that will form the foundation of Korea’s national physical AI cluster. The Memorandum of Understanding was signed by the Ministry of Science and ICT of the Republic of Korea, Hyundai Motor Group, and NVIDIA. According to Minister Bae Kyung-hoon, this collaboration marks a pivotal moment for Korea’s ambition to become a global AI leader — transforming its rich manufacturing data into the driving force of technological progress.

Hyundai Motor Group is leveraging three key NVIDIA platforms: DGX for AI training and software development, Omniverse and Cosmos for creating digital twins and production simulations, and DRIVE AGX Thor for embedding AI into vehicles and robots. Together, these systems will serve as the backbone of a new intelligent ecosystem where machines, factories, and services interact seamlessly in real time.

The partnership also emphasizes talent development. Engineers from Hyundai and NVIDIA are collaborating on training programs aimed at nurturing local AI specialists and facilitating knowledge exchange. This human capital strategy is seen as essential to Korea’s ability to maintain momentum in the global race for AI innovation.

Analysts view the project as a major step for Hyundai Motor Group in its evolution from a car manufacturer to a technology powerhouse. In partnership with NVIDIA, Hyundai is working toward creating vehicles and factories that not only operate intelligently but learn and evolve — ushering in a new era of intelligent mobility.