By Focus and AFP | 2026-03-18

SEOUL -- An Nvidia-backed US startup and a South Korean conglomerate have announced plans to build an artificial intelligence (AI) data center that will reportedly be the largest in South Korea.

New York-based Reflection AI and retail giant Shinsegae Group signed a Strategic Partnership Memorandum of Understanding March 16 in San Francisco for a 250MW AI facility.

Partnership with US technology

US Commerce Secretary Howard Lutnick attended the event. The project is the first case selected under AI Export Program 1, a US government initiative designed to promote the overseas deployment of American AI technology, Chosun Biz reported.

For South Korea, the project is tied to efforts to expand domestic AI infrastructure and strengthen control over the development and use of advanced systems at home. The center would offer "fully sovereign frontier capabilities built and operated on home soil," AFP reported.

Michael Kratsios, director of the White House Office of Science and Technology Policy, called the deal an example of how "US AI companies and open-source models can provide practical assistance to partner nations in pursuing meaningful AI sovereignty."

Aiming for top-3 status

South Korea is home to memory chip makers Samsung Electronics and SK hynix, and Seoul has said it aims to become one of the world's top 3 AI powers alongside the United States and China. Like other countries, South Korea is increasing investment in AI to keep up in global technology. Reflection AI, founded in 2024, is part of a collaboration led by Nvidia to advance frontier-level AI.

Under the deal, the data center will use Nvidia chips to serve businesses across South Korea. Reflection will provide chips, models and engineering, while Shinsegae will manage financing, real estate and permitting. The project amounts to a several-billion-dollar investment, though the sides gave no specific numbers.

Shinsegae plans to use its retail data and store network to develop AI tools tied to shopping, payments, delivery, inventory management and logistics.

Seeking autonomy in AI

Under the deal, Reflection's models are expected to be used by Korean companies and government agencies as part of plans to develop greater AI autonomy. The company plans to develop models customized for Korean language and culture.

Shinsegae is positioning the tie-up as both a growth opportunity and a broader bet on Korea's AI development. The Wall Street Journal quoted Chairman Chung Yong-jin as saying that the data center "will not only be a growth opportunity for Shinsegae, but also a pivot point for the Korean AI ecosystem."

Within the group, Shinsegae Property, the real estate wing of Shinsegae Group, will lead construction of the center, while Shinsegae I&C, the firm's information technology wing, is expected to manage operations.

Laskin described open-source AI in strategic terms. "Open models are Trojan horses for the infrastructure they bring with them," he said, referring to chips, software and applications. Reflection AI is working to prevent other countries from becoming dependent on Chinese infrastructure, he said, according to the Wall Street Journal.

"We're building AI infrastructure that the Republic of Korea can control, audit and evolve on its own terms," Laskin said.