Samsung and Nvidia to collaborate on an “AI megafactory” with 50K GPUs

Even as many AI startups, including OpenAI, the largest among them, continue to burn through vast sums of money developing their “future-proof” services, Nvidia remains the main beneficiary of the AI boom. The company has grown to become the largest in the world, recently surpassing the $5 trillion mark, and is now working with Samsung on an “AI megafactory.”

Nvidia and Samsung have announced their new partnership to build an “AI megafactory” equipped with 50,000 NVIDIA-designed GPUs in a cluster developed by Samsung, aimed at furthering mobile and robotics chip manufacturing capabilities.

The facility remains mostly under wraps, but multiple industry sources have confirmed the deal. According to Raymond Teh, Nvidia’s senior vice president for the Asia-Pacific region, the collaboration aligns with South Korea’s broader national goals for developing and deploying AI technology.

Earlier reports stated that Nvidia CEO Jensen Huang met with Samsung Chairman Lee Jae-yong and Hyundai Chairman Chung Eui-sun in Seoul, South Korea’s capital, where the three were seen sharing a casual meal. This supports reports that Nvidia is collaborating with other major South Korean conglomerates to supply GPUs for AI acceleration.

The interesting aspect of the new Nvidia-Samsung deal is that Samsung remains one of the few global companies with in-house chip fabrication capabilities. Meanwhile, Nvidia is one of the leading fabless chip designers worldwide, relying on partners such as the Taiwan-based TSMC and Samsung to manufacture its designs.

As part of the new arrangement, Nvidia plans to tailor its GPU architectures to Samsung’s lithography-based manufacturing platform for next-generation accelerators. Nvidia representatives have said that this closer integration could result in up to a 20% performance boost for the Korean foundry. Additionally, Nvidia’s Omniverse platform—designed to connect GPU computing with software development and simulation tools—is expected to support the collaboration.