South Korea Joins the Global AI Race with 10,000 High-Performance GPUs

• Government Initiative:
  • South Korea’s acting President Choi Sang-mok announced the plan on Monday, emphasizing the shift from corporate to national-level competition in AI innovation.
  • The government aims to secure the GPUs through public-private cooperation, with details on budget, GPU models, and participating companies to be finalized.
  • The initiative is part of a broader effort to accelerate the launch of the country’s national AI computing centre, which has been in planning since summer 2023.
• Global Context:
  • The U.S. recently imposed export restrictions on advanced AI chips, dividing countries into tiers. South Korea is among 18 exempted nations, while others like China and Russia face complete bans.
  • The initiative seeks to ensure South Korea’s access to critical AI infrastructure amid tightening global regulations.
• GPU Market Dynamics:
  • Nvidia dominates the global GPU market with an 80% share, driven by demand for generative AI and accelerated computing.
  • Competitors like Intel and AMD lag behind, while OpenAI is developing its in-house AI chips to reduce reliance on Nvidia.
• AI Industry Trends:
  • OpenAI is finalizing the design of its first in-house chip, set for fabrication at Taiwan Semiconductor Manufacturing Co (TSMC).
  • Chinese startup DeepSeek is innovating with AI models that optimize computational efficiency, potentially narrowing the gap between Chinese and U.S. AI processors.
• Strategic Importance:
  • The number of GPUs required for AI development depends on factors like data volume, model size, and training time.
  • South Korea’s move underscores the growing importance of AI infrastructure in national competitiveness.
• Global AI Investments:
  • The U.S. is leading with initiatives like Project Stargate, a $500 billion AI infrastructure project spearheaded by OpenAI and SoftBank.
  • France recently announced $110 billion in private AI investments, while the European Union plans to invest $200 billion in AI infrastructure.
  • The U.K. is fostering an AI-friendly environment, with Prime Minister Keir Starmer aiming to “mainline AI into the veins of this enterprising nation.”
• Geopolitical Tensions:
  • The U.S. has imposed export restrictions on AI chips and materials, creating a tense environment for global AI development.
  • South Korea’s exemption from these restrictions allows it to strengthen its position in the AI race.

Why This Matters

• National Competitiveness: Securing 10,000 GPUs positions South Korea as a leader in AI innovation, reducing reliance on foreign technology.
• Global AI Race: The initiative reflects the intensifying competition among nations to dominate AI development and infrastructure.
• Economic Impact: Access to advanced GPUs could boost South Korea’s tech sector, fostering innovation and economic growth.
• Geopolitical Implications: The U.S. export restrictions highlight the strategic importance of AI chips, with South Korea leveraging its exempt status to strengthen its position.
• Historical Parallels: The current AI revolution mirrors the Industrial Revolution, with governments playing a proactive role in shaping technological advancements.