Hyundai Motor Group Executive Chair Euisun Chung set out the group's physical AI vision at the San Francisco AI Summit on July 24, 2026, an event attended by South Korean President Lee Jae Myung and roughly 150 Korean business leaders, US technology executives, startups and students.
Hyundai Motor Group is evolving beyond the traditional boundaries of automotive manufacturing by expanding into autonomous driving, robotics and AI Defined Factories, accelerating our transformation into a Physical AI solution company. — Euisun Chung, Executive Chair, Hyundai Motor Group
The stated arc runs in three stages: intelligence in individual devices such as vehicles and robots; then intelligent spaces, meaning factories where AI connects production, logistics and quality control; then integrated intelligence at city level.
What is actually being funded
With Nvidia: a supply agreement for 50,000 Blackwell GPUs, a new Robot Application Center, an Nvidia AI Technology Center and manufacturing digital twins. The two companies will also build a Robot Reference Platform — standardised robot hardware and software supplied to Korean universities, research institutes and startups.
In Korea: about ₩9 trillion for Saemangeum AI Valley in Jeonbuk State, covering AI data centers, a robotics manufacturing cluster, electrolyser plants and AI hydrogen city infrastructure. The robotics cluster is also intended to act as a foundry for smaller companies without manufacturing scale of their own. A further ₩42 trillion is earmarked for the Yeongnam region over the next decade.
On robots: a US plant with capacity for up to 30,000 units a year by 2028, with Atlas deployed first at the Metaplant in Georgia, and a Boston Dynamics partnership with Google DeepMind on next-generation humanoids. Waymo continues, with autonomous-ready IONIQ 5 production at the Georgia plant.
Key Facts
- San Francisco AI Summit, July 24, 2026 — about 150 attendees including President Lee Jae Myung
- Nvidia: 50,000 Blackwell GPUs, a Robot Application Center, an AI Technology Center, and a Robot Reference Platform for Korean universities and startups
- Saemangeum AI Valley, Jeonbuk State: about ₩9tn for AI data centers, a robotics cluster doubling as an SME robotics foundry, electrolysers and hydrogen city infrastructure
- Yeongnam region: ₩42tn over the next decade for AI manufacturing, aerospace and energy
- US robot plant sized for up to 30,000 units a year by 2028; Atlas deployed first at the Georgia Metaplant
Why it matters
The phrase "physical AI company" is now doing real work in Korean industrial strategy, and Hyundai is the anchor tenant. What separates this from a slide is the foundry idea: a robotics cluster that manufactures for other Korean firms turns Hyundai's capex into shared national capacity, which is how Korea built its display and battery positions.
The risk is concentration. A captive fleet built for Hyundai and Kia plants, trained on Hyundai data, running on a platform co-designed with one GPU supplier, is efficient and narrow. External customers arrive in 2027; that is when the strategy gets tested against a merchant market.
Frequently Asked
What is the three-stage vision?
Intelligent devices such as vehicles and robots, then intelligent spaces such as AI factories, then integrated intelligence at city level.
What is being spent in Korea?
About ₩9tn on Saemangeum AI Valley including a robotics cluster that will also do contract manufacturing, and ₩42tn in Yeongnam over a decade.
Where do the robots get built?
A US plant sized for up to 30,000 units a year by 2028, with Atlas going first to the Georgia Metaplant.