'Chipflation' continues as global attention focuses on the price of NVIDIA's next-generation Rubin chip to be unveiled next year. It has been confirmed that the South Korean government will procure one Rubin rack for 27.5 billion won per unit next year. To achieve a leap into the top three AI nations, the government is actively investing in GPUs despite the high costs.
According to the 'Global AI Frontier Lab' project explanation document obtained by the Lee Jeong-heon office of the Democratic Party of Korea on the 5th, the Ministry of Science and ICT has been allocated a budget of 3.85 trillion won for expanding GPU servers next year.
Specifically, the plan is to secure 140 Rubin NVL72 server racks. The price per unit is set at 27.5 billion won, which is higher than previously anticipated by foreign media.
In a June report, U.S. investment bank Bernstein predicted the cost of a typical Rubin NVL72 rack at $9.1 million (approximately 12.3 billion won). At that time, Bernstein noted that GPU prices would rise significantly due to increases in HBM (high-bandwidth memory) costs. However, GPU prices have since risen further, and NVIDIA recently warned customers of a price increase in the mid-teens percentage range.
The NVL72 rack consists of 72 Rubin GPUs and 36 Ruby CPUs per unit. It also includes NVLink 6 (switch), ConnectX-9 Super NIC, liquid cooling systems, and other components.
An NVIDIA representative explained, "Server prices are not determined solely by GPU and CPU costs; configuration methods and prices vary by OEM server manufacturers such as HP and Dell." They added, "Since the total server set includes networking equipment, cooling systems, data storage costs, etc., it may be higher than reported." The representative further noted that given NVIDIA's favorable stance toward the South Korean government, the price was likely not set exceptionally high.
Earlier, during a budget briefing, the Ministry of Science and ICT stated that this amount would be used to secure approximately 10,000 units of Rubin GPUs. Securing 140 server racks would result in a total of 10,080 Rubin GPUs. However, if Rubin GPU supply is insufficient next year, some adjustments may occur. The secured GPUs will be used for developing next-generation frontier models such as AGI (Artificial General Intelligence).
Lee Jeong-heon (Rep.) stated, "In the AI war where national survival hangs in the balance, the government has made bold and preemptive decisions." They emphasized, "Accepting the burden of high costs to rapidly secure cutting-edge infrastructure is an essential path for South Korea to leap into the top three AI nations." They further added, "We fully welcome the government's active will to invest in GPUs. At the party level, we will spare no policy or budgetary support to ensure this Rubin rack introduction leads to a groundbreaking leap in South Korea's AI industry and secures future growth drivers."
Meanwhile, the government's efforts to secure the latest GPUs have occurred amid a trend where AI is becoming a national asset, exemplified by recent developments such as 'US Toss'.
Deputy Prime Minister Bae Kyung-hoon officially formalized South Korea's challenge in developing frontier AI models during a one-year anniversary press conference. He has consistently emphasized that "to create a model on the scale of US Toss, approximately 10,000 units of 'Rubin' are needed" and that "to secure global leadership beyond being one of the top three AI nations, such investment is necessary."
in TECH
