Hyundai Motor to Invest $6.3 Billion in AI, Robotics Center
Hyundai Motor is set to invest 9 trillion won (approximately $6.3 billion) to build an artificial intelligence data center, a robotics factory, and a production facility in South Korea, a move seen as an encouraging step toward accelerating the company's transformation.
The bulk of the investment, 5.8 billion won, will be directed toward building a state-of-the-art Korean AI data center with 50,000 graphics processing units (GPUs) to develop autonomous driving capabilities for AI-powered vehicles, according to a statement released by the South Korean company on Friday.
The company has also allocated 1 trillion won to build a solar-powered electricity analysis facility to produce 80 tons of hydrogen gas daily, in addition to investing 1.3 trillion won in a solar power plant for AI learning and hydrogen-electric production.
Hyundai is investing in robotics
The project will be located in Seung-gu, 270 kilometers southwest of Seoul.
It also includes the construction of Hyundai's first robotics factory in South Korea, with an investment of up to 400 billion won, to produce wearable robots and similar industrial and logistical components. The company plans to later expand into a regional robotics component manufacturing complex.
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Hyundai signed agreements with seven government entities on Friday, following a partnership it established in October with Nvidia to build a national artificial intelligence complex using Blackwell technology.
This announcement comes as Hyundai Motor accelerates its growth in new areas, primarily artificial intelligence, robotics, and autonomous driving technologies, amid increasing pressure on its core businesses. This pressure stems from the rise of major Chinese animation companies and intensifying competition, as well as the growing demand for electric vehicles in key markets such as North Korea.
Hyundai's investments support the Korean economy
This is the Boston Dynamics unit, which showcased a short-production version of its Atlas humanoid robot at last month's Consumer Electronics Show (CES), to be manufactured in the United States.
This massive investment aligns with South Korean President Lee Jae-myung's vision of boosting employment opportunities in communities outside Seoul and major cities. The project is expected to create 71,000 new jobs, as well as attract global partner companies and their talent, according to the ministry.
"The molecular and industrial robots that the factory will produce on a large scale will be equipped with an AI data center, enabling them to learn in stages," Lee said during the investment signing ceremony.
"This area will become a futuristic city where everyone can easily control robots in their daily lives," he added.
