Key Points
- Advanced Micro Devices is negotiating to deliver 10,000 MI355 AI accelerators to Korean AI firm Upstage.
- CEO Lisa Su traveled to Seoul for direct discussions with Upstage’s CEO Sung Kim regarding the agreement.
- The Korean startup seeks to reduce reliance on Nvidia’s dominant position in the nation’s AI chip market.
- Upstage participates in a state-sponsored AI development competition dubbed the “AI Squid Game.”
- The startup is developing a massive 200-billion-parameter language model for upcoming summer assessments.
Advanced Micro Devices is negotiating a significant agreement to provide 10,000 MI355 AI processing units to Upstage, a South Korean artificial intelligence company — potentially representing one of the semiconductor manufacturer’s most substantial contracts in Asia’s expanding AI sector.
Upstage’s chief executive Sung Kim validated the ongoing negotiations following discussions with AMD’s CEO Lisa Su during her recent Seoul visit. “Korea currently relies heavily on Nvidia hardware, but we’re actively pursuing diversification strategies that include AMD’s technology,” Kim stated during a Bloomberg Television interview this Monday.
Advanced Micro Devices, Inc., AMD
These negotiations emerge amid surging demand for AI computational resources throughout Asia, while growing concerns regarding Nvidia’s availability and cost structure drive organizations toward alternative solutions.
For Advanced Micro Devices, securing a 10,000-unit contract represents more than revenue growth. It establishes strategic presence in a territory where Nvidia maintains overwhelming market control.
Advanced Micro Devices Takes Aim at Nvidia’s Korean Stronghold
Upstage represents one of four competitors in a government-sponsored initiative to develop South Korea’s premier national AI system. This competition — informally dubbed the “AI Squid Game” referencing the popular Netflix series — operates under the Ministry of Science and ICT’s supervision.
Competing teams undergo biannual evaluations, with top performers receiving expanded access to premium Nvidia GPU resources. South Korean officials intend to identify two final contenders by early next year.
To maintain competitive positioning, Upstage is constructing a large language model featuring approximately 200 billion parameters, designed for the upcoming summer evaluation phase. Such computational demands require substantial processing infrastructure.
Incorporating AMD’s processors would enable Upstage to obtain necessary capacity while minimizing reliance on a single technology provider.
Upstage Pursues Economical AI Solutions for Global Markets
Beyond the national competition, Upstage has established international growth objectives. The organization is pursuing opportunities in regions including the UAE and Vietnam with “sovereign AI” platforms — systems operating within national boundaries to maintain data and infrastructure sovereignty.
Efficiency forms a fundamental component of this strategy. As budget-friendly AI solutions from Chinese developers capture global market share, Upstage aims to provide premium performance at competitive pricing. Combining AMD and Nvidia components could enable the company to achieve this equilibrium.
Should negotiations conclude successfully, this arrangement would provide a significant evaluation of whether AMD’s MI355 can perform effectively in demanding, high-pressure production scenarios.
AMD stock experienced approximately 1.92% decline on Sunday. Wall Street maintains a Moderate Buy consensus on AMD, supported by 21 Buy recommendations and 8 Hold ratings issued during the previous three months. Analysts’ average price target reaches $284.96, suggesting potential upside of approximately 41% from present trading levels.
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