Hyundai Motor Group and Nvidia to Build AI Factory Based on Next-Generation Blackwell AI Chip

Collaboration to Foster Korea's Physical AI Innovation Ecosystem
Development, Validation, and Demonstration of Models for Autonomous Driving and Robotics

Hyundai Motor Group and Nvidia announced on October 31 that, on the occasion of the 2025 Asia-Pacific Economic Cooperation (APEC) Summit held in Gyeongju, North Gyeongsang Province, they will strengthen their collaboration to drive innovation in autonomous vehicles, smart factories, and robotics. This will be achieved by introducing a new AI factory based on Nvidia's next-generation artificial intelligence (AI) chip, Blackwell.

Jensen Huang, CEO of Nvidia, greeted the audience alongside Chung Euisun, Chairman of Hyundai Motor Group, at the 'GeForce Gamer Festival' held on the night of October 30 at COEX Square in Gangnam-gu, Seoul, celebrating the 25th anniversary of GeForce in Korea. 2025.10.30 Photo by Jo Yongjun

Hyundai Motor Group and Nvidia plan to move beyond the strategic adoption of advanced software platforms and infrastructure, entering a new phase of partnership focused on joint innovation in core physical AI technologies. Initially, the two companies will work together to enhance AI capabilities for mobility solutions, next-generation smart factories, and on-device semiconductor innovation, thereby boosting future competitiveness. To this end, Hyundai Motor Group and Nvidia plan to utilize 50,000 Blackwell GPUs to develop, validate, and demonstrate integrated AI models.

Additionally, the two companies will collaborate with government officials to support the Korean government's plan to establish a national physical AI cluster, accelerating the development of the physical AI ecosystem through an investment of approximately 3 billion dollars. This includes the establishment of the Nvidia AI Technology Center, the Hyundai Motor Group Physical AI Application Center, and domestic data centers. There will be active exchanges between engineers and technical staff, and the initiative is also expected to contribute to nurturing the next generation of physical AI talent in Korea.

On the same day, Hyundai Motor Group also signed a memorandum of understanding (MOU) with the Ministry of Science and ICT and Nvidia to enhance domestic physical AI capabilities.

Vice Prime Minister and Minister of Science and ICT Baek Kyunghoon stated, "Promoting physical AI is essential for Korea to become a leading AI nation," adding, "I find it very meaningful that the Ministry of Science and ICT has achieved the first step in public-private cooperation to foster physical AI, which is a key focus area for us."

Chung Euisun, Chairman of Hyundai Motor Group, said, "Strengthening our partnership with Nvidia is a leap forward to lead the era of AI-based mobility and smart factories. Beyond developing advanced technologies, we will continue to work together to build Korea's AI ecosystem, accelerate innovation, nurture talent, and secure global AI leadership."

Jensen Huang, founder and CEO of Nvidia, emphasized, "Together with Hyundai Motor Group, which is at the center of Korea's leading industries and one of the world's top mobility solution companies, we will realize intelligent vehicles and factories and jointly shape the mobility industry, which is expected to grow into a multi-trillion-dollar market in the future."

Samsung Electronics Chairman Lee Jae-yong (from left), Jensen Huang, CEO of Nvidia, and Hyundai Motor Group Chairman Chung Eui-sun are greeting each other after finishing a 'chimaek' gathering at a chicken restaurant in Samseong-dong, Seoul on the evening of the 30th. 2025.10.30 Photo by Jo Yongjun

Based on the Nvidia Blackwell-powered AI factory, Hyundai Motor Group will build core infrastructure to integrate in-vehicle AI, autonomous driving, production efficiency, and robotics into a single, intelligent, and interconnected ecosystem. In addition, the company will optimize manufacturing processes and enable testing and validation of autonomous vehicle software across unlimited driving scenarios.

Hyundai Motor Group will also use the Nvidia Omniverse Enterprise platform to build a powerful digital twin of its factories. A digital twin is a three-dimensional model that allows the factory environment to be monitored and managed identically in a virtual setting.This is expected to accelerate the transition to fully autonomous, software-centric factories, fundamentally transforming automotive design and manufacturing methods.

This will be extended to humanoids and robotics systems. Before deploying robots on the production line, task assignments, motion planning, and ergonomic safety can be verified in a virtual environment, significantly increasing the speed of robot integration and maximizing productivity.

Hyundai Motor Group is also testing the creation of digital twins for driving environments and conditions by region, aiming to advance the development process of autonomous driving technologies through extensive simulation.

Furthermore, Hyundai Motor Group is developing advanced AI models based on the open AI inference model Nvidia NeMoTron and the Nvidia NeMo software. This will enable continuous improvement of vehicle-wide functions and performance through over-the-air (OTA) software updates.

In addition, the company plans to utilize advanced models to develop innovative in-vehicle AI features such as personalized digital assistants, intelligent infotainment, and adaptive comfort systems.

A Hyundai Motor Group official said, "Through collaboration with Nvidia, we are evolving vehicles and factories from individual systems into a single, interconnected intelligent ecosystem, setting a new standard for the future of the global automotive industry."