Jensen Huang Exit Risk Splits Korean AI Startups on Stakes

Nvidia lined up investments in four Korean startups on the 9th — Point2 Technology, plus planned deals with Upstage, Motif Technologies and Realworld — and one day earlier, CEO Jensen Huang admitted to an extramarital affair, putting his future at the top of the agenda for Korea's AI ecosystem.

Korean startups are now split over what his possible departure means, according to IT industry sources on the 12th. In AI chips, where a market is already established, most expect little immediate change. In physical AI, still at an early stage of growth, some worry the momentum behind market expansion could weaken.

The timing was awkward, to put it mildly. Huang acknowledged the affair on the 8th. On the 9th, Nvidia and the Ministry of Science and ICT jointly hosted an AI Startup Partnership Forum in Seoul, discussing cooperation with roughly 20 domestic companies. Nvidia announced its investment in Point2 Technology at the event and disclosed plans for three more.

What happened at the Seoul forum?

The mood soured on event day. Madison Huang — Nvidia's senior director of product marketing for Omniverse and robotics, and the chief executive's eldest daughter — abruptly canceled her trip to Korea, where she had been scheduled to co-chair the forum.

"The atmosphere on site was subdued because of her absence," one company official said.

The same day, at Nvidia AI Day in Seoul, the company put physical AI at the center of its agenda and showcased cooperation cases with Korean manufacturers and robotics firms.

Why does physical AI feel more exposed?

Industry officials see little chance that existing investments or technology partnerships will be halted in the near term. The concern is medium to long term. Nvidia has been broadening cooperation in the field around Groot, an AI model for robot learning, and Isaac, a platform for robot development and simulation.

"Physical AI is a field where the market has not yet fully formed, and Huang effectively appointed himself its first salesman and built it up as a future growth industry," one venture capital industry official said. "Given that he personally set the tone for the market and expanded use cases for Nvidia's platform through various events, his replacement could have a negative effect."

The official added: "The impact will be greater on future businesses planned with a two- to three-year horizon than on existing businesses such as graphics processing units that are already selling. The key question is who can take over Huang's role."

The chief executive of one physical AI startup takes a more measured view. Nvidia is organized by business unit, so Huang's absence alone wouldn't greatly affect the entire industry. "But because he built close relationships with Korean companies through his distinctive drive and public engagement, some gap may be unavoidable," the executive said. "Semiconductor and robotics technologies require designing and preparing products that will launch years later. What matters is whether the leadership that pushed businesses boldly with an eye on future markets will be maintained."

Could Korean chip startups actually gain?

Some investors see a side benefit for local AI chip players. "Nvidia has dominated the market by building its own CUDA ecosystem, so this could become positive momentum in the competitive landscape for Korean NPU companies such as Rebellions and FuriosaAI," one venture capital official said.

Others urge caution, noting that NPUs and GPUs aren't necessarily competitors. "Even if Jensen Huang is removed, Nvidia's technological capabilities and business foundation will not be shaken," one industry official said. "Korean NPU companies have also formed partnerships with Nvidia, so it is hard to say for certain that a management change is good news."

What actually decides the outcome?

The variable is how much weight Nvidia's next management team puts behind physical AI. Existing GPU supply and technology cooperation can run through working-level organizations, but physical AI is still at the market-formation stage, and its growth pace can shift depending on top management's investment decisions.

"Nothing has been communicated so far to Korean startups about any change in business plans," one industry official said. "But there is concern that a change in top management could alter the level of interest in the Korean market or the commitment to expanding business here."