Hyundai and NVIDIA Join Forces to Launch AI Factory for Future Mobility Solutions

Hyundai and NVIDIA Collaborate to Create an AI Factory

Hyundai Motor Group has made headlines with its latest initiative in collaboration with NVIDIA, aiming to establish a significant AI factory that will not only bolster Korea's AI sector but also drive innovation in autonomous vehicles (AVs), smart factories, and robotics.

This venture is a part of a larger effort to transform Korea into a leader in the global AI landscape through strong public-private cooperation. The collaboration was formalized with the signing of a Memorandum of Understanding on October 31, 2025, which aims to establish a robust physical AI infrastructure in the country.

Enhancing AI Capabilities

The new AI factory will leverage NVIDIA’s expansive suite of technologies, including the Blackwell architecture, which comprises 50,000 GPUs. This advanced infrastructure is designed to facilitate integrated AI model training, validation, and deployment, enabling Hyundai to accelerate the development of in-vehicle AI, advanced driver-assistance systems, and solutions aimed at enhancing mobility.

Euisun Chung, Executive Chair of Hyundai Motor Group, highlighted the importance of this partnership, stating, "Deepening our collaboration with NVIDIA marks a pivotal step forward as we build a robust AI ecosystem in Korea—one that encourages innovation and nurtures talent."

The move is geared towards creating digital twins of manufacturing environments, utilizing NVIDIA's Omniverse and Cosmos platforms. These technologies allow for the simulation and optimization of manufacturing processes and enable the testing and validation of software across diverse driving conditions, significantly improving the production pipeline and enhancing product safety.

Government Support and Investment

Supporting the Korean government’s initiative to develop a national AI cluster, this collaboration is expected to result in an investment of approximately $3 billion. Key components will include the establishment of the Hyundai Physical AI Application Center and the NVIDIA AI Technology Center, both designed to accelerate ecosystem development and exchange ideas between local talents and international experts.

The Deputy Prime Minister of Korea, Bae Kyung-hoon, remarked on the significance of this collaboration, emphasizing that for Korea to be a leading AI nation, advancing physical AI is crucial. By integrating local manufacturing capabilities with NVIDIA’s cutting-edge technologies, a viable model for innovation—termed innovative AI transformation (AX)—is anticipated to emerge within various industries.

The Road Ahead

As Hyundai embarks on this ambitious journey, the AI factory is poised to revolutionize how the automotive industry approaches problem-solving and innovation. Moreover, using tools such as NVIDIA DRIVE AGX Thor, which operates on the safety-certified DriveOS, the factory will usher in next-generation safety features and advanced driver-assistance systems.

This multifaceted collaboration between Hyundai and NVIDIA not only aims at advancing automotive technology but also focuses on creating interconnected smart factories and robust AI capabilities. The infrastructure laid by this partnership sets the groundwork for Hyundai to redefine the future of how vehicles are designed and manufactured, ensuring they are in tune with the demands of a rapidly evolving market.

In conclusion, as the partnership unfolds, both companies aim to harness the power of AI to create intelligent mobility solutions, thereby securing Korea's position as a competitive force in the global AI landscape. By leveraging advanced technologies and a collaborative approach, there's a shared vision for a future where AI-driven innovations enhance the way we travel and engage with our environments.