Tuesday, 02 January 2024 12:17 GMT

Samsung Reveals "AI Mega Factory" Plans with Nvidia


(MENAFN) Korean technology powerhouse Samsung revealed Friday an ambitious blueprint to deploy 50,000 Nvidia graphics processing units (GPUs) in constructing what it terms an "AI Mega Factory" designed to revolutionize semiconductor production for robotics and mobile platforms.

"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.

The electronics manufacturer remained silent on specific location details or construction timelines for the planned facility.

"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 leverage Omniverse, Nvidia's simulation platform, to scale next-generation AI manufacturing infrastructure. The smartphone leader additionally disclosed plans to operate proprietary AI models powered by Nvidia chips.

The relationship extends beyond simple customer dynamics—Samsung serves as a critical supplier to Nvidia while simultaneously functioning as partner and client.

Samsung manufactures high-bandwidth memory, a specialized high-performance memory variant that Nvidia deploys extensively across its AI systems. According to Samsung, Nvidia and Samsung will collaborate to modify Samsung's fourth-generation HBM memory for AI chips.

This alliance materializes following 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.

The revenue projection propelled Nvidia's stock upward, establishing it as the inaugural company to surpass a $5 trillion market capitalization.

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