DIGIVESTASI - Nvidia Partners with Vietnam to Develop AI Research and Infrastructure, Nvidia, the leading chipmaker from the United States, has formed a strategic partnership with the Vietnamese government to establish a research and development center for artificial intelligence (AI) in the country. Additionally, a separate AI data center will be developed by Viettel Group, a military-owned telecommunications company in Vietnam, using Nvidia’s technology. This announcement was made on Thursday (December 5) during a meeting between Vietnamese Prime Minister Pham Minh Chinh and Nvidia CEO Jensen Huang in Hanoi.

In addition, Nvidia has completed the acquisition of VinBrain, an AI-based healthcare technology company that was previously part of Vingroup, Vietnam’s largest private conglomerate. Reports indicate that Vingroup has reduced its stake in VinBrain from 49.7% in the second quarter to just 18.2% in the third quarter of this year.

Major Investments in Vietnam’s AI Technology

Since Jensen Huang’s first visit to Vietnam last December, Nvidia has announced several collaborations with local technology companies. One notable project is a $200 million AI factory, approximately VND 3 trillion, being developed in partnership with Hanoi-based tech firm FPT. The facility is set to receive 127 Nvidia HGX H100 server systems this month following approval from U.S. authorities, according to Le Hong Viet, CEO of FPT Smart Cloud.

However, Nvidia’s AI chip exports to Vietnam are subject to stringent U.S. export controls. These regulations require additional licensing for the shipment of critical technologies to certain countries, including Vietnam. Le Hong Viet emphasized that Vietnam needs to establish more next-generation data centers as the current infrastructure remains traditional and less optimized for AI development.

Vietnam’s Push for High-Tech Development

The Vietnamese government has previously urged the United States to relax restrictions on high-tech exports following the elevation of their bilateral relations to a comprehensive strategic partnership in September. This move is expected to accelerate technological advancement in Vietnam.

Nvidia’s Expansion in Southeast Asia

Nvidia’s collaboration in Vietnam is part of Jensen Huang’s broader efforts to expand AI infrastructure across Southeast Asia. Previously, Huang visited Thailand and Indonesia. In Malaysia, Nvidia announced the construction of a $6.1 billion AI data center last year.

However, Nvidia’s approach in Vietnam appears more concrete compared to Indonesia. In Vietnam, Nvidia has allocated direct investments for AI infrastructure and technology development. In contrast, in Indonesia, Huang has primarily provided strategic insights without committing to direct investments. During the Indonesia AI Day 2024 event in Jakarta, Huang expressed optimism about Indonesia’s potential in AI development.

"I am thrilled to see AI advancements in Indonesia. If the country seriously pursues this technology, a bright future is undoubtedly ahead," Huang stated.

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