South Korean artificial intelligence startup Upstage is in discussions with semiconductor giant AMD to purchase around 10,000 AI chips as part of a broader effort to expand its computing infrastructure and scale AI capabilities. The potential deal reflects the growing demand for high-performance chips required to train and deploy advanced AI models.
The discussions reportedly took place during a recent meeting in Seoul between Upstage CEO Sung Kim and AMD CEO Lisa Su. The talks focused on securing AMD’s latest AI accelerators, including the Instinct MI355 series, which are designed to power large-scale AI workloads and enterprise applications.
Upstage is looking to diversify its hardware dependencies, as the AI industry has largely been dominated by Nvidia chips. The company already uses Nvidia hardware but is now exploring AMD as an alternative to reduce reliance on a single supplier and build a more balanced AI infrastructure.
The potential acquisition is part of Upstage’s broader strategy to expand its AI capabilities and strengthen South Korea’s domestic AI ecosystem. The company is actively developing large language models and enterprise AI tools, which require significant computing power to operate efficiently at scale.
This move also aligns with South Korea’s push to build “sovereign AI,” where countries develop and operate their own AI systems and infrastructure independently. By securing large volumes of AI chips, Upstage aims to play a key role in supporting national AI initiatives and reducing dependence on foreign infrastructure.
The discussions highlight intensifying global competition for AI chips, as companies and governments race to secure the computing resources needed for next-generation artificial intelligence. With demand for GPUs and AI accelerators continuing to surge, large-scale procurement deals such as this are becoming critical for companies aiming to stay competitive in the rapidly evolving AI landscape.
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