Hyundai Motor announced on February 27th, Friday, an investment of $6.3 billion (approximately 9 trillion KRW) to build an AI data center (50,000 GPUs), a robotics factory, and green hydrogen facilities in South Korea to accelerate the research and development of autonomous driving and robotics technology. The project is expected to create 71,000 jobs and help the Korea Composite Stock Price Index recover from an early 2.4% decline.
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According to Bloomberg, this massive investment plan totaling $6.3 billion is expected to be completed by the end of 2029. This move is not only a core step for Hyundai Motor to promote the research and development of autonomous driving and robotics technology but also a key measure to cope with multiple pressures in the global automotive market and seek new growth engines.
The capital market reacted positively to this strategic transformation. Boosted by the continuous rise in Hyundai Motor's stock price, the Korea Composite Stock Price Index successfully turned positive during the session, fully recovering from an early decline of up to 2.4%, indicating investors' recognition of the investment plan.
South Korean President Lee Jae-myung expressed high hopes for the project at the investment agreement signing ceremony on Friday. He stated that the region will be transformed into a future city where everyone can conveniently use robots, and this plan will greatly stimulate regional economic and employment development.
<h2>Investing Heavily in AI and Robotics Infrastructure</h2>
The core of Hyundai Motor's investment lies in building a massive AI computing power and robotics manufacturing capability. According to a statement released by the South Korean Ministry of Land, Infrastructure and Transport on Friday, the largest portion of the funding will go to the AI data center. Hyundai Motor plans to invest 5.8 trillion KRW to equip the data center with 50,000 GPUs to fully support the development of autonomous vehicles and deep learning for robots.
At the same time, the company will invest 400 billion KRW to build its first robotics factory in South Korea. This factory aims to mass-produce wearable robots and other industrial and logistics models, and is committed to cultivating a complete robotics parts industry cluster in the region. Lee Jae-myung emphasized that the logistics and industrial robots mass-produced at this factory will be directly connected to the AI data center, enabling continuous machine learning. Both of these core facilities are planned to be completed by the end of 2029.
<h2>Supporting New Energy and Deepening Cooperation with Tech Giants</h2>
To ensure the operation of the massive tech facilities, Hyundai Motor has also made large-scale arrangements in new energy support. The plan will allocate 1 trillion KRW to build a water electrolysis facility capable of producing 80 tons of green hydrogen daily; another 1.3 trillion KRW will be specifically used for the construction of solar power plants, directly providing power support for AI and hydrogen energy projects. All these facilities will be located in the Saemangeum area, about 270 kilometers southwest of Seoul.
In terms of the technological ecosystem, Hyundai Motor is continuously deepening cooperation with top global tech companies. According to Bloomberg, the company reached a partnership with NVIDIA last October to utilize the chip manufacturer's Blackwell accelerator to develop a national-level physical AI cluster. Additionally, Hyundai's Boston Dynamics recently showcased the mass-produced version of its Atlas humanoid robot at CES, which will be manufactured in the United States
<h2>Responding to Industry Headwinds and Boosting Local Economy</h2>
Hyundai Motor's aggressive cross-industry investments come at a time when its core automotive business faces increasingly severe external challenges. Currently, the company is under multiple pressures, including potential tariff policies in the United States, fierce competition from Chinese automakers, and a slowdown in the transition to electric vehicles in key markets like North America. Increasing investments in new growth areas such as AI, robotics, and autonomous driving have become important means for breaking through these challenges.
This large-scale investment not only aligns with the company's strategic needs but also closely matches the economic vision of the South Korean government. The project responds to President Lee Jae Myung's call to create more job opportunities and to shift the regional economic focus from large cities like Seoul to the outskirts. The South Korean Ministry of Land, Infrastructure and Transport expects that the plan will create 71,000 new jobs and is likely to attract global partner companies and their top talents.

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

- Hyundai Motor announced a $6.3 billion investment to build AI data centers, a robotic factory, and green hydrogen facilities in South Korea, aiming to enhance autonomous driving and robotics development.  
- The project is expected to create 71,000 jobs and is aligned with the Korean government's economic vision to diversify growth beyond major cities.  
- This investment will also contribute to establishing a complete robotics parts industry and significant collaborations with global tech firms.

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