Key Highlights
- Advanced Micro Devices is negotiating to deliver 10,000 MI355 AI accelerators to Upstage, a South Korean AI company.
- Lisa Su, AMD’s CEO, held discussions with Upstage’s CEO Sung Kim during a Seoul visit last week.
- The South Korean firm seeks to reduce dependence on Nvidia, currently the dominant AI chip provider in Korea.
- Upstage is participating in a state-sponsored AI competition dubbed the “AI Squid Game” by industry observers.
- The startup is developing a large language model with 200 billion parameters for upcoming summer assessments.
Advanced Micro Devices has entered negotiations to deliver 10,000 units of its MI355 AI processing chips to Upstage, a South Korean artificial intelligence startup — representing what could become one of the semiconductor manufacturer’s most significant contracts in Asia’s rapidly expanding AI sector.
Upstage’s chief executive, Sung Kim, validated the ongoing negotiations following his meeting with AMD CEO Lisa Su during her Seoul visit last week. “Korea has substantial Nvidia chip infrastructure, but diversification to alternatives like AMD’s offerings is our objective,” Kim stated during a Bloomberg Television interview Monday.
Advanced Micro Devices, Inc., AMD
These negotiations emerge as Asia experiences surging demand for artificial intelligence computing capabilities, while supply constraints and pricing concerns surrounding Nvidia prompt organizations to evaluate competitive options.
For Advanced Micro Devices, securing a 10,000-unit contract represents more than revenue generation. It signifies establishing market presence in a territory where Nvidia maintains overwhelming market leadership.
Breaking Into Nvidia’s Korean Territory
Upstage represents one of four participants in a government-sponsored initiative to develop South Korea’s premier national artificial intelligence system. The competition — informally termed the “AI Squid Game” referencing the popular Netflix series — operates under supervision from South Korea’s Ministry of Science and ICT.
Participants undergo biannual evaluations, with top performers receiving enhanced access to premium Nvidia GPU resources. South Korean authorities intend to designate two final contenders by early next year.
To maintain competitive standing, Upstage is constructing a large language model encompassing approximately 200 billion parameters, scheduled for the upcoming summer evaluation phase. Such computational demands necessitate substantial processing infrastructure.
Incorporating AMD’s accelerators would enable Upstage to obtain necessary capacity while diminishing reliance on a single hardware provider.
Strategic International Expansion Through Cost-Efficient AI
Beyond competitive participation, Upstage pursues international market penetration. The organization targets regions including the United Arab Emirates and Vietnam with “sovereign AI” frameworks — systems operating within national boundaries to maintain data and infrastructure sovereignty.
Efficiency constitutes a fundamental component of this strategy. As economically competitive AI models from Chinese developers gain worldwide momentum, Upstage aims to deliver superior performance at competitive pricing. Combining AMD and Nvidia hardware could facilitate achieving this equilibrium.
Should negotiations conclude successfully, the agreement would provide a genuine evaluation of whether AMD’s MI355 accelerators can perform effectively in demanding, high-stakes production environments.
AMD stock experienced approximately 1.92% decline on Sunday. Wall Street maintains a Moderate Buy consensus on AMD, derived from 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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