Hyundai and NVIDIA’s $3B AI Factory for Smarter Cars

Hyundai Motor Group and NVIDIA are getting serious. They’re not just dabbling in software anymore — they’re building a full-on AI playground to power autonomous vehicles, smart factories, and robots, all backed by NVIDIA Blackwell AI infrastructure. Think of it as giving every Hyundai car, assembly line, and robot its own digital brain.

This new phase of their collaboration moves beyond simply using software — they’re now co-developing physical AI technologies for mobility solutions, next-generation smart factories, and on-device semiconductor advancements. In short: Hyundai is future-proofing, and NVIDIA is supplying the tech steroids.

Part of this insane project involves running AI model training, validation, and deployment on 50,000 NVIDIA Blackwell GPUs. Yep, 50,000. Enough computing power to make your laptop feel like a Game Boy.

They’re also working with the Korean government on a national physical AI cluster, committing roughly $3 billion to advance the physical AI ecosystem. This includes the Hyundai Motor Group Physical AI Application Centre, NVIDIA AI Technology Centre, and multiple physical AI data centres in Korea. To formalize it, the Ministry of Science and ICT of the Republic of Korea, Hyundai Motor Group, and NVIDIA signed a Memorandum of Understanding on October 31.

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“For Korea to leap forward as a leading nation in AI, the advancement of physical AI is essential – a key initiative championed by the Ministry of Science and ICT. This inaugural step in public-private collaboration to foster physical AI is therefore incredibly significant,” said Bae Kyung-hoon, Deputy Prime Minister and Minister of Science and ICT of the Republic of Korea. “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,” he emphasised.

“As we enter a new era of AI-powered mobility and smart factory, deepening our collaboration with NVIDIA marks a pivotal step forward,” said Euisun Chung, Executive Chair of Hyundai Motor Group. “Together, we are not only building advanced technologies but also laying the foundation for a robust AI ecosystem in Korea – one that fosters innovation, nurtures talent, and positions us at the forefront of global AI leadership.”

“AI will revolutionise 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,” said Jensen Huang, founder and CEO of NVIDIA. “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.”

With NVIDIA Blackwell-based AI factories, Hyundai will integrate in-vehicle AI, autonomous driving, factory automation, and robotics into one intelligent ecosystem. They’re leveraging NVIDIA DGX for large-scale AI model training, NVIDIA Omniverse and Cosmos for digital twins and simulations, and NVIDIA DRIVE AGX Thor for real-time AI smarts in vehicles and robots.

Hyundai’s also testing Omniverse and Cosmos on RTX PRO Servers to build digital twins of driving environments, making autonomous driving development faster and smarter. Future vehicles could use NVIDIA Nemotron and NeMo AI models for over-the-air updates, turning cars into continuously learning, adaptive intelligent agents.

In short, Hyundai’s cars and factories are about to get a brain transplant — and the world can’t look away.

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