NVIDIA to Build AI Center Worth 270 Billion KRW in Indonesia... Targeting Future Customers?

U.S. semiconductor company NVIDIA is set to establish an artificial intelligence (AI) center in Indonesia worth approximately 270 billion KRW. This appears to be a strategic move by NVIDIA to preemptively secure countries where it plans to develop AI infrastructure.

[Image source=Yonhap News]

According to Bloomberg and other sources on the 5th (local time), Budi Arie Setiadi, Minister of Communication and Information Technology, announced in a statement on the 3rd that NVIDIA and Indonesian telecommunications company Indosat plan to invest $200 million this year to build an AI center in Surakarta, Central Java.

This AI center will be established at the Surakarta Technopark and will be used for human resource development and telecommunications infrastructure development. He added, "The specific schedule and plans will be finalized soon."

NVIDIA's investment in AI-related projects in emerging countries is interpreted as an effort to solidify its market dominance over its GPUs (graphics processing units). GPUs, capable of processing many mathematical operations quickly, are considered essential components for AI training.

Currently, NVIDIA effectively monopolizes the GPU market. However, as competition intensifies and market share could potentially decrease, this investment in potential AI development countries is seen as a proactive strategy to secure demand for its products.

Jensen Huang, CEO of NVIDIA, stated in a Bloomberg TV interview last month, "As countries around the world strive to secure AI infrastructure, the demand for our products will increase."

The news of NVIDIA's investment was welcomed by the mayor of Surakarta, Indonesia. Gibran Rakabuming Raka emphasized, "It is certain that we must immediately utilize AI," adding, "Eventually, everything will be replaced by AI, so we must not fall behind."

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