Samsung partners with Nvidia to build 'AI Mega Factory'

Korean tech giant Samsung announced Friday that it plans to deploy 50,000 Nvidia graphics processing units (GPUs) to establish an "AI Mega Factory" to enhance its production of chips for robots and mobile devices.

"By deploying more than 50,000 NVIDIA GPUs, AI will be embedded throughout Samsung's entire manufacturing flow, accelerating development and production of next-generation semiconductors, mobile devices and robotics," Samsung said in a statement.

However, Samsung did not specify where or when the factory would be built.

"Samsung's AI Factory will integrate every aspect of semiconductor manufacturing, from design and process to equipment, operations and quality control, into a single intelligent network, where AI continuously analyzes, predicts and optimizes production environments in real time," it noted.

Samsung will also make use of Omniverse, a simulation platform developed by Nvidia, to scale next-generation AI manufacturing infrastructure. Samsung, which is well-known for its smartphones, also announced that it would run its own AI models on the Nvidia chips.

Samsung is a significant supplier to Nvidia in addition to being a partner and client.

Samsung produces high-bandwidth memory, a type of high-performance memory that Nvidia employs extensively in conjunction with its AI systems. According to Samsung, Nvidia and Samsung will collaborate to modify Samsung's fourth-generation HBM memory for AI chips.

The partnership with Samsung follows Nvidia CEO Jensen Huang's announcement in Washington on Tuesday that Nvidia was selling partnerships with Palantir, Eli Lilly, CrowdStrike, and Uber.

Huang also said on Tuesday that Nvidia has $500 billion in revenue from its current-generation GPU, Blackwell, and its next-generation GPU, Rubin.

As a result of the forecast, Nvidia's shares climbed, making it the first firm to exceed a $5 trillion market cap.