Hyundai Motor Group has announced a partnership with US technology company Nvidia to jointly advance artificial intelligence (AI) capabilities across autonomous vehicles, robotics, and smart manufacturing. The collaboration will be part of a new AI cluster supported by the South Korean government to strengthen the nation’s position in advanced technology.
The initiative is expected to attract around $3 billion in investment and will include the establishment of a Physical AI Application Centre operated by Hyundai Motor Group, an Nvidia AI Technology Centre, and multiple AI data centres in the region. South Korea’s Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon said, “Korea has a strong foundation in manufacturing. By combining Korea’s rich manufacturing data with NVIDIA’s cutting-edge AI infrastructure, we expect to build a Win-Win model through collaboration with domestic companies, thereby accelerating innovative AI transformation (AX) in manufacturing across industries.”
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Nvidia founder and CEO Jensen Huang said, “AI will revolutionize 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.” He added, “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.”
As part of the collaboration, Hyundai will establish an “AI factory” powered by 50,000 Nvidia Blackwell GPUs. This will not be a traditional manufacturing facility, but a specialised computing infrastructure designed to handle the entire AI lifecycle—from data collection and model training to fine-tuning and large-scale inference. Nvidia said the AI factory will use technologies such as Nvidia Drive AGX Thor, DGX, Omniverse, and Cosmos.
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Through the partnership, Hyundai plans to develop digital twins of its production sites to enhance automation and robot integration. The company will also create digital replicas of driving environments to accelerate the testing and development of autonomous driving systems. Inside Hyundai’s next-generation vehicles, Nvidia’s Drive AGX Thor platform will power advanced driver assistance, safety systems, and immersive AI experiences for passengers.