(News Focus) Jensen Huang scandal casts uncertainty over S. Korea's deepening AI ties with Nvidia

Seoul, Nov. 11 - The visit of Nvidia CEO Jensen Huang to South Korea in June highlighted the strong ties between the two countries in the field of artificial intelligence (AI), according to a Yonhap report. Huang met with leaders of major South Korean technology firms, including Samsung Electronics, SK Group, and Hyundai Motor Group.

In July, he also met with President Lee Jae Myung and other industry leaders to discuss strengthening AI cooperation. However, a scandal involving Huang and a woman suspected of having ties to Chinese intelligence has raised concerns about potential regulatory scrutiny and uncertainties over Nvidia's leadership. This controversy coincided with the cancellation of a planned meeting in Seoul by Madison Huang, Nvidia's daughter and executive.

Nvidia officials have declined to comment on the potential impact of the U.S. congressional investigation on the delivery of GPUs to South Korea or partnerships with local chipmakers. So far, there is no indication that the controversy has disrupted Nvidia's chip supplies or major AI projects in South Korea. South Korea's Science and ICT Ministry stated that Nvidia's GPU shipments to the country were expected to proceed as scheduled.

The uncertainty surrounding the situation comes as Nvidia is expanding its presence in South Korea, becoming a key partner in the country's AI development efforts. Samsung Electronics and SK hynix, major suppliers of high-bandwidth memory chips used in Nvidia's AI accelerators, may face increased regulatory scrutiny if the controversy leads to U.S. regulatory action.

The potential implications of the scandal extend beyond semiconductors, as several South Korean companies, including SK Telecom and AI startup Rebellions, have announced plans to collaborate with Nvidia on AI projects. Despite the uncertainty, South Korean officials remain committed to maintaining ties with Nvidia, viewing the partnership as crucial for expanding domestic companies into global markets and advancing the country's AI ambitions.