Executive Chair Chung: "Partnering with Global Big Tech... Transitioning into a Physical AI Solutions Company"

Directions for Realizing the Physical AI Vision and Collaboration Strategies with Big Tech

Chairman Chung: "Transitioning from Automotive Manufacturing to a Physical AI Solutions Provider"

Highlighting Distinctive Strengths in Manufacturing, Mobility, and Robotics for Competitive Advantage in Physical AI

Over 50 Trillion Won Invested in Saemangeum and Yeongnam... Ongoing Domestic Investment in Physical AI

Euisun Chung, Executive Chair of Hyundai Motor Group, attended the "San Francisco Artificial Intelligence (AI) Summit" held in San Francisco, USA, on the 24th (local time), where he presented Hyundai Motor Group’s vision and strategy for Physical AI.

President Lee Jae-myung shakes hands with Euisun Chung, Executive Chair of Hyundai Motor Group, at the San Francisco AI Summit held at The Midway in San Francisco, USA on the 24th (local time). Photo by Yonhap News Agency

The event was attended by approximately 150 people, including Executive Chair Chung, top management from major Korean companies, U.S. big tech executives, startup stakeholders, and students.

At the event, Executive Chair Chung stated, "Hyundai Motor Group is moving beyond the boundaries of traditional automobile manufacturing and is now transitioning into a provider of physical AI solutions such as autonomous driving, robotics, and AI factories."

The Physical AI vision pursued by Hyundai Motor Group begins with the intelligence of individual devices, including automobiles and robots. It then aims to advance to smart spaces where entire manufacturing processes are organically connected through AI in settings like AI factories, and ultimately, to the integrated intelligence of cities as a whole.

In particular, Hyundai Motor Group, armed with extensive experience in large-scale manufacturing, mobility, robotics, and service operations, possesses a distinctive competitive edge in building a positive data feedback loop that allows Physical AI to be applied and advanced in real-world industrial settings.

Executive Chair Chung also revealed strategic collaboration plans with big tech companies such as Nvidia, Waymo, and Google DeepMind to further advance Physical AI.

By combining Hyundai Motor Group’s manufacturing competitiveness, mobility and robotics technology, and massive datasets with big tech’s AI infrastructure and algorithms, a new innovative ecosystem for the era of Physical AI can be created.

In addition, measures to drive a major leap in Korea’s industrial and technological ecosystem were unveiled, such as the joint construction of a “robot reference platform” combining Hyundai Motor Group’s and Nvidia’s Physical AI capabilities, and investments in the "Saemangeum AI Valley" to support breakthroughs in domestic robotics and AI technology innovation.

Presenting a Physical AI Vision… Toward 'City-Level Integrated Intelligence' Beyond Individual Devices

Executive Chair Chung stated, “The Physical AI that Hyundai Motor Group envisions starts with the intelligence of individual devices like cars and robots, then goes through the intelligence of specific spaces such as AI factories, and ultimately realizes city-level integrated intelligence, where the entire city infrastructure is organically connected and operated through intelligence.”

He laid out a plan beginning with adding AI functions such as autonomous driving to vehicles and enhancing the performance of intelligent robots, leading to the intelligence of spaces where AI autonomously integrates logistics, production, and quality processes, and ultimately realizing city-level intelligence where core infrastructure and assets—such as energy, mobility, and robotics—are connected and optimized in real time within urban infrastructure.

Executive Chair Chung also outlined the unique strengths of Hyundai Motor Group and strategies to realize the vision for Physical AI.

Samsung Electronics Chairman Jay Y. Lee (right) and Hyundai Motor Group Chairman Euisun Chung are conversing at the "San Francisco AI Summit" held at The Midway in San Francisco, USA, on the 24th (local time), with President Jae-myung Lee in attendance. Photo by Yonhap News

The first is the group’s world-class manufacturing competitiveness. Hyundai Motor Group has accumulated extensive experience in operating global manufacturing hubs, quality control, and supply chain management over many years. This provides a vital foundation to quickly apply, verify, and deploy AI technologies in actual products, processes, and services.

The second is Hyundai Motor Group’s lead in robotics. Having consistently pioneered new areas, the group has developed robotics as a core pillar for new businesses. Boston Dynamics’ quadruped robot “Spot” and the intelligent logistics robot “Stretch,” as well as the Robotics Lab’s next-generation mobile robot platform “MobED,” are all considered flagship platforms, demonstrating both practical utility and technological excellence. In particular, the humanoid robot “Atlas” attracts attention as a prime example of Physical AI by assisting and collaborating with humans in manufacturing, logistics, and mobility fields.

The third is securing a “data flywheel” structure. Hyundai Motor Group utilizes enormous amounts of data accumulated from real-world environments such as manufacturing sites, vehicles, logistics, and robot demonstrations for AI advancement, and keeps improving algorithms and applying them back in practice to enhance performance. This virtuous cycle—dubbed the "data flywheel"—is considered a key competitive advantage for maximizing the capabilities of Physical AI.

Strategic Partnerships with Global Big Tech, Including Nvidia and Google

Executive Chair Chung noted, "By combining Hyundai Motor Group’s strengths in manufacturing, robotics, and data with those of big tech companies, a new innovation ecosystem for the Physical AI era can emerge," revealing concrete steps to become a leader in human-centric Physical AI.

Hyundai Motor Group is pursuing extensive partnerships to strengthen Korea’s Physical AI infrastructure and foster AI talent. This includes a contract with Nvidia for the supply of 50,000 Blackwell GPUs, the signing of an “MOU for Enhancing Domestic Physical AI Capabilities” last year, the establishment of Hyundai Motor Group’s "Robot Application Center," and Nvidia’s “AI Technology Center.”

Euisun Chung, Executive Chair of Hyundai Motor Group, meets with Jensen Huang, CEO of Nvidia. Nvidia

In the field of digital manufacturing twins, Hyundai Motor Group is deploying Nvidia platforms to virtualize manufacturing sites more precisely and optimize processes and operations. The group is also combining Nvidia’s vehicle semiconductors, sensors, and AI architectures with Hyundai Motor Group’s vehicle platforms to develop advanced autonomous driving solutions.

Collaboration with Waymo to lead the expansion of the autonomous driving market is also being strengthened.

Since forming a strategic partnership with Waymo in 2024, Hyundai Motor Group and Waymo have been working together in various areas, starting with an autonomous driving foundry business.

At Hyundai Motor Group’s Meta Plant America (HMGMA) in Georgia, USA, IONIQ 5 vehicles equipped with autonomous driving specifications—such as redundant steering, braking, and power hardware, advanced functional safety, and enhanced cybersecurity—are scheduled to be produced and supplied to Waymo.

Boston Dynamics has entered a strategic partnership with Google DeepMind and is leading the development of differentiated technologies to accelerate the progress of next-generation humanoid robots.

For robots to perform complex tasks in the real world and collaborate with humans, not only advanced hardware but also sophisticated AI models and training systems are essential. Through this partnership, Boston Dynamics robots will achieve greater autonomy and become more flexible in adapting to complex environments.

Based on these initiatives, Hyundai Motor Group plans to build a robot production system in the U.S. capable of manufacturing 30,000 units annually by 2028, deploying the new generation of electric Atlas prototypes first at production hubs such as HMGMA and then gradually expanding after successful verification.

Establishing a ‘Robot Reference Platform’ to Foster an Open Ecosystem… Ongoing Investment in Domestic Physical AI

Executive Chair Chung emphasized, “The outcomes from collaborations with big tech must serve as a foundation for the growth of Korea’s Physical AI industry,” adding, “To this end, Hyundai Motor Group will foster an open ecosystem for the advancement of domestic robotics and AI technologies.”

The joint “robot reference platform” initiative by Hyundai Motor Group and Nvidia is aimed at supporting innovation and talent development in Physical AI by offering research robot models to universities, research institutes, and startups, thus creating an open ecosystem.

As a result, domestic research organizations and startups with creative ideas but lacking commercialization and verification infrastructure are expected to gain opportunities to develop and demonstrate Physical AI technologies more easily in a standardized hardware-software environment.

Large-scale investments to drive a major leap in the domestic industry and technology ecosystem are also progressing without delay.

Hyundai Motor Group is building the “Saemangeum AI Valley” in the Saemangeum region of North Jeolla Province, including an AI data center, robot manufacturing cluster, water electrolysis plant, and AI hydrogen city, representing a total investment of approximately 9 trillion won. The robot manufacturing cluster will play roles ranging from Hyundai Motor Group's own robot product manufacturing to contract manufacturing of small and medium-sized companies’ products that lack manufacturing expertise. Over the next 10 years, an advanced industrial hub integrating an AI-based manufacturing hub, future aviation and aerospace, sustainable energy infrastructure, and more will be fostered in the Yeongnam region through a total investment of 42 trillion won.

Through these initiatives, Hyundai Motor Group aims to fully integrate data, energy, robotics production, and demonstration capabilities, thereby strengthening Korea’s industrial competitiveness, fostering balanced regional development, creating jobs, and contributing to revitalizing the national economy in the Physical AI era.

This content was produced with the assistance of AI translation services.