The planned deployment of these 50,000 Nvidia GPUs will form the backbone of what Samsung refers to as an “AI Megafactory.” However, the company has yet to disclose the timeline for the construction of this facility.

This partnership marks another high-profile collaboration for Nvidia, whose technology is pivotal in the development and operation of cutting-edge artificial intelligence systems.

The news of Samsung’s partnership follows an announcement by Nvidia’s CEO, Jensen Huang, earlier in the week. Speaking in Washington, D.C., Huang revealed that Nvidia is also teaming up with several other prominent firms, including Palantir, Eli Lilly, CrowdStrike, and Uber.

The agreement with Samsung comes after Nvidia CEO Jensen Huang on Tuesday announced in Washington, D.C., that Nvidia was collaborating with companies including Palantir, Eli Lilly, CrowdStrike and Uber.

Shortly after the speech, Huang was spotted in South Korea drinking beer with Samsung Chairman Lee Jae-yong and other business leaders, according to local media. Other Korean companies, including SK Group and Hyundai, are also deploying similar amounts of GPUs, Nvidia said.

“We’re working closely with the Korean government to support its ambitious leadership plans in AI,” Raymond Teh, Nvidia’s senior vice president of Asia-Pacific, said on a call Wednesday with reporters.

The partnerships support Huang’s claim on Tuesday that Nvidia has a book of business that totals $500 billion from its current generation GPU, called Blackwell, in addition to its next-generation GPU, called Rubin.

The forecast helped boost Nvidia’s stock, making the company the first to reach a market cap of $5 trillion.

On Thursday, Nvidia representatives said they will work with Samsung to adapt the Korean company’s chipmaking lithography platform to work with Nvidia’s GPUs. That process will results in 20 times better performance for Samsung, the Nvidia representatives said. Samsung will also use Nvidia’s simulation software called Omniverse. Known for its mobile phones, Samsung also said it would use the Nvidia chips to run its own AI models for its devices.

In addition to being a partner and customer, Samsung is also a key supplier for Nvidia.

Samsung makes the kind of high-performance memory Nvidia uses in large quantities, alongside its AI chips, called high bandwidth memory. Samsung said it will work with Nvidia to tweak its HBM4 memory for use in AI chips.

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