Hyundai and NVIDIA Invest $3 Billion to Build AI Factory with Blackwell GPUs

Hyundai Motor is expanding its collaboration with NVIDIA to build a new artificial intelligence (AI) factory powered by NVIDIA’s Blackwell architecture.

The two companies first confirmed their strategic partnership earlier this year at CES, aligning on joint initiatives spanning autonomous vehicles (AVs), smart manufacturing, and robotics.

During NVIDIA CEO Jensen Huang’s first visit in over a decade to Hyundai’s home base, the companies took the opportunity at the 2025 Asia-Pacific Economic Cooperation (APEC) summit in Korea to unveil further details of their joint roadmap.

According to a press release, the partnership has entered a new phase focused on “co-innovation in core physical AI technologies.” A cornerstone of this effort will be the creation of an AI factory for Hyundai, equipped with 50,000 NVIDIA Blackwell GPUs to enable integrated AI training, validation, and deployment.

This AI factory—or computing infrastructure—will leverage key NVIDIA platforms to unify multiple domains into a cohesive ecosystem, including in-vehicle AI, autonomous driving, factory automation, and robotics.

The NVIDIA DGX platform will support large-scale AI model training and software development, while the Omniverse 3D simulation platform and the Cosmos foundation model platform will enable digital twins to optimize manufacturing and simulation for AV testing. Meanwhile, the DRIVE AGX Thor platform will serve as the real-time AI brain in both vehicles and robots.

In addition, Hyundai and NVIDIA have signed a memorandum of understanding with South Korea’s Ministry of Culture, Sports and Tourism and the Ministry of Science and ICT to collaborate with stakeholders and accelerate the development of the nation’s AI ecosystem.

The companies announced a combined investment of $3 billion in the region to establish a Physical AI Application Center for Hyundai, an NVIDIA AI Technology Center, and multiple Physical AI Data Centers.

South Korean Deputy Prime Minister and Minister of Science and ICT, Baek Kyung-hoon, welcomed the significant commitment to advancing AI in Korea.

“For Korea to become a global leader in AI, progress in physical AI is essential. This public-private partnership marks a critical first step in that direction,” he said.

“By combining Korea’s rich manufacturing data with NVIDIA’s cutting-edge AI infrastructure, we aim to create a win-win model through collaboration with domestic enterprises.”

Hyundai Motor Executive Chairman Euisun Chung stated that the partnership will position both his company and the nation at “the forefront of AI leadership,” while NVIDIA’s Jensen Huang declared that the two companies will produce “vehicles and factories that will shape the future of a multi-trillion-dollar mobility industry.”