Hyundai Motor Group Outlines Physical AI Strategy

Insider Brief

  • Hyundai Motor Group outlined a physical AI strategy focused on autonomous driving, robotics and AI-driven factories, with a longer-term goal of connecting vehicles, robots, energy systems and urban infrastructure through AI.
  • The company said the strategy will rely on partnerships with Nvidia, Waymo and Google DeepMind, including work on Blackwell GPUs, digital twins, autonomous-ready IONIQ 5 vehicles and next-generation humanoid robots through Boston Dynamics.
  • Hyundai also plans to support South Korea’s robotics and AI ecosystem through a Robot Reference Platform with Nvidia, Saemangeum AI Valley and KRW 42 trillion in Yeongnam region investments over the next decade.

Hyundai Motor Group has outlined a physical AI strategy centered on autonomous driving, robotics and AI-driven factories.

According to Hyundai, the strategy, presented by Executive Chair Euisun Chung Friday at an AI summit in San Francisco, starts with intelligent devices, including vehicles and robots. It then moves into intelligent spaces, such as factories where AI helps manage logistics, production and quality control. The longer-term goal is city-level intelligence, where energy, mobility and robotics systems are connected and optimized in real time.

The company said its advantage comes from its experience in manufacturing, mobility, robotics and large-scale operations. Hyundai is trying to create a data loop in which information from factories, vehicles, logistics systems and robotics demonstrations improves AI models, which are then applied back into real-world operations.

The plan also depends on partnerships with major technology companies, including:

Nvidia

Hyundai is expanding work with Nvidia on physical AI infrastructure, robotics and autonomous-driving systems. The collaboration includes a supply agreement for 50,000 Nvidia Blackwell GPUs, work on digital twins for production facilities and a planned Hyundai Motor Group Robot Application Center.

Waymo

Hyundai is continuing its autonomous-driving partnership with Waymo. The company plans to produce IONIQ 5 vehicles with autonomous-ready modifications at Hyundai Motor Group Metaplant America in Georgia.

Google DeepMind

Boston Dynamics, which Hyundai owns, has formed a strategic partnership with Google DeepMind to accelerate development of next-generation humanoid robots with improved autonomoy and performance in complex environments.

Hyundai also said it plans to establish a robot production facility in the U.S. with annual capacity of up to 30,000 units by 2028. Atlas, Boston Dynamics’ humanoid robot, is expected to be deployed first at Hyundai production sites, including Metaplant America, before additiona deployments.

Strengthening South Korea’s Robotics and AI Ecosystems

The company is also working with Nvidia on a Robot Reference Platform. Hyundai indicated the platform will provide research robot models and a standardized hardware and software environment to universities, research institutes and startups.

The goal is to support Korea’s robotics and AI ecosystem by giving researchers and smaller companies access to tools for developing and validating physical AI technologies.

Chung also outlined several large investment plans in Korea. In the Saemangeum region of Jeonbuk State, the company is developing Saemangeum AI Valley, with about KRW 9 trillion planned for AI data centers, robotics manufacturing clusters, electrolyzer plants and AI hydrogen city infrastructure.

The robotics manufacturing cluster is expected to serve both Hyundai’s own robotics production and outside companies that need manufacturing support.

Hyundai also plans to invest KRW 42 trillion over the next decade in the Yeongnam region to support AI-driven manufacturing, future aerospace industries and sustainable energy infrastructure.

“The outcomes of collaboration with global technology leaders should contribute to the growth of Korea’s Physical AI industry,” Chung said. “To that end, Hyundai Motor Group plans to foster an open ecosystem that supports innovation in robotics and AI technologies.” 

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