Naver Partners with Samsung for Cutting-Edge AI Chip Solutions


  • Naver picks Samsung’s Mach-1 AI chips over Nvidia for its map service.
  • Samsung’s Mach-1 offers better performance and efficiency, attracting Naver.
  • Naver aims to lessen dependence on Nvidia by switching to Samsung.

Naver, the owner of South Korea’s largest search platform and various AI-powered services, has made a decisive shift by selecting Samsung over Nvidia for its next $752 million AI chip order. This move, reported by KED Global, underscores Naver’s strategic efforts to diversify its hardware partnerships and minimize dependence on Nvidia, the incumbent leader in the AI hardware domain.

Samsung’s Mach-1 AI chips

The Mach-1 AI chips by Samsung, slated for an early 2025 launch, have caught Naver’s attention for their potential to enhance performance while offering significant cost savings. These chips are set to power Naver’s servers for its AI map service, Naver Place. By incorporating up to two million Mach-1 AI accelerators by the end of the year, Samsung stands to gain substantially, with the deal potentially amounting to the entire $752 million.

Naver’s decision to opt for Samsung over Nvidia has reverberated throughout the tech industry, garnering interest from major players like Microsoft and Meta. This move signifies a broader trend among tech giants seeking alternatives to Nvidia’s dominant position in the AI hardware market. The emergence of Samsung’s Mach-1 chips as a viable contender underscores the growing competition in the sector.

The allure of Samsung’s Mach-1 chips lies not only in their purported performance but also in their significantly lower price point. Reportedly priced at a fraction of Nvidia’s offerings, Mach-1 chips promise better power efficiency without compromising functionality. This presents a compelling proposition for Naver, allowing the company to maximize performance per dollar and maintain competitiveness in AI-powered services.

Samsung’s SoC design advantage

Samsung’s Mach-1 AI accelerators boast a System-on-Chip (SoC) design that integrates the company’s processors and LPDDR memory chips. As industry sources cited in KED’s reporting noted, this design innovation aims to mitigate bottlenecks and reduce power consumption. Naver’s confidence in Samsung’s technology reflects the efficacy of this integrated approach, further bolstering Samsung’s standing in the AI hardware market.

While Naver’s partnership with Samsung signals a significant shift away from Nvidia, the true test lies in the performance and reliability of Mach-1 AI chips. Only time will reveal whether these chips can effectively replace Nvidia’s H100 AI accelerators in Naver’s infrastructure. Nonetheless, Naver’s willingness to explore alternative hardware providers underscores the demand for diversity and innovation in the AI hardware landscape.

Naver’s strategic decision to partner with Samsung for its AI chip needs marks a pivotal moment in the evolution of the AI hardware market. By prioritizing performance, cost-effectiveness, and technological innovation, Naver aims to maintain its competitive edge in the AI-powered services sector. As Samsung’s Mach-1 chips prepare for deployment, the tech industry eagerly anticipates the impact of this collaboration on the broader AI ecosystem.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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James Kinoti

A crypto enthusiast, James finds pleasure in sharing knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. The latest innovations in the crypto industry, crypto gaming, AI, blockchain technology, and other technologies are his preoccupation. His mission: be on track with transformative applications in various industries.

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