Automobile giants transforming into AI powerhouses? Investing $6.3 billion in AI, building data centers and robotics factories

Hyundai Motor announced on Friday, February 27, a $6.3 billion (approximately 90 trillion Korean won) investment to build an AI data center (50,000 GPUs), a robotics factory, and green hydrogen facilities in South Korea to accelerate autonomous driving and robotics technology development. The project is expected to create 71,000 jobs and help the Korean Composite Stock Price Index recover from a 2.4% decline in the morning session.

According to Bloomberg, this massive investment plan totaling up to $6.3 billion is expected to be completed by the end of 2029. This move is not only a key step for Hyundai Motor to promote autonomous driving and robotics research but also a crucial measure to respond to multiple pressures in the global automotive market and seek new growth engines.

The capital market responded positively to this strategic transformation. Boosted by Hyundai Motor’s continuous stock price increase, the Seoul Composite Index successfully rebounded during trading, fully recovering from the early session’s 2.4% decline, indicating investor confidence in the investment plan.

South Korean President Lee Jae-myung expressed high expectations for the project at the signing ceremony on Friday. He stated that the region will be developed into a future city where everyone can conveniently use robots, and the plan will also significantly boost regional economic development and employment.

Massive Investment in AI and Robotics Infrastructure

The core of Hyundai Motor’s investment is to build extensive AI computing power and robotics manufacturing capabilities. According to a statement released by the Ministry of Land, Infrastructure and Transport of South Korea on Friday, the largest portion of the funds will go toward an AI data center. Hyundai Motor plans to invest 5.8 trillion Korean won to equip the data center with 50,000 GPUs, fully supporting autonomous vehicle development and deep learning for robots.

Meanwhile, the company will invest 400 billion won to build its first robotics factory in South Korea. The factory aims to mass-produce wearable robots and other industrial and logistics models, and to cultivate a complete robotics parts industry cluster in the region. Lee Jae-myung emphasized that the logistics and industrial robots produced at the factory will be directly connected to the AI data center to enable continuous machine learning. Both core facilities are scheduled for completion by the end of 2029.

Supporting New Energy and Deepening Tech Industry Collaborations

To ensure the operation of these large-scale technological facilities, Hyundai Motor has also undertaken extensive plans in new energy infrastructure. The plan allocates 1 trillion won to build a water electrolysis facility capable of producing 80 tons of green hydrogen daily; an additional 1.3 trillion won will be dedicated to solar power plants to directly supply electricity for AI and hydrogen projects. All these facilities will be located in the Saemangeum area, about 270 kilometers southwest of Seoul.

In terms of technological ecosystem development, Hyundai Motor continues to deepen collaborations with top global tech companies. According to Bloomberg, the company partnered with NVIDIA last October to utilize the Blackwell accelerator to develop a national-level physical AI cluster. Additionally, Hyundai’s Boston Dynamics recently showcased its production version of the Atlas humanoid robot at CES, which will be manufactured in the United States.

Addressing Industry Headwinds and Boosting Local Economy

Hyundai Motor’s aggressive cross-sector investments come at a time when its core automotive business faces increasing external challenges. The company is under multiple pressures, including potential US tariffs, fierce competition from Chinese automakers, and a slowdown in the transition to electric vehicles in key markets like North America. Increasing investment in new growth areas such as AI, robotics, and autonomous driving has become a vital strategy to break through these difficulties.

This large-scale investment not only aligns with the company’s strategic needs but also closely matches the Korean government’s economic vision. The project responds to President Lee Jae-myung’s call to create more jobs and to expand regional economic activity beyond Seoul and other major cities. The Ministry of Land, Infrastructure and Transport estimates that the plan will create 71,000 new jobs and is expected to attract global partner companies and top talent.

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