Quick Overview
- Advanced Micro Devices is negotiating a deal to provide 10,000 MI355 AI accelerators to Upstage, a South Korean AI startup.
- Last week in Seoul, AMD’s CEO Lisa Su held discussions with Upstage’s CEO Sung Kim regarding the potential agreement.
- The Korean company aims to reduce its reliance on Nvidia, which currently controls most of Korea’s AI chip market.
- Upstage is participating in a government-sponsored AI development competition dubbed the “AI Squid Game.”
- The startup is developing a 200-billion-parameter artificial intelligence model for the upcoming summer assessment phase.
Advanced Micro Devices is pursuing negotiations to deliver 10,000 units of its MI355 AI processing chips to Upstage, a South Korean artificial intelligence company — a transaction that would represent a significant breakthrough for AMD in Asia’s rapidly expanding AI sector.
Korean AI startup Upstage is in discussions with AMD to buy 10,000 of its latest AI accelerators as part of an effort to bring large-scale compute into the country https://t.co/PmSjPo7i85
— Bloomberg (@business) March 23, 2026
Following a meeting with AMD’s CEO Lisa Su in Seoul during the previous week, Upstage’s CEO Sung Kim acknowledged the ongoing negotiations. Kim stated to Bloomberg Television on Monday, “Korea has an abundance of Nvidia chips, but we’re seeking to expand our options to include other manufacturers, particularly AMD.”
Advanced Micro Devices, Inc., AMD
These discussions unfold amid rising demand for artificial intelligence computational resources throughout Asia, while concerns regarding Nvidia’s availability and cost structure drive organizations to explore alternative solutions.
For Advanced Micro Devices, securing an order for 10,000 chips represents more than just revenue. It would establish a crucial presence in a sector currently controlled by Nvidia.
AMD Seeks to Break Nvidia’s Korean Market Dominance
Upstage belongs to a group of four competitors in a government-funded initiative to create South Korea’s leading national artificial intelligence platform. This competition — informally called the “AI Squid Game” in reference to the popular Netflix series — operates under the supervision of South Korea’s Ministry of Science and ICT.
Participating teams undergo evaluations biannually, with top performers receiving enhanced access to premium Nvidia graphics processing units. South Korean authorities intend to identify two final contenders by the beginning of next year.
To maintain its competitive position, Upstage is constructing a large language model containing approximately 200 billion parameters, preparing for the upcoming assessment scheduled for this summer. Such computational demands necessitate substantial processing infrastructure.
Incorporating AMD’s processing units would enable Upstage to obtain necessary capacity while decreasing its reliance on a sole hardware provider.
Upstage Pursues Economical AI Solutions at Scale
Looking beyond the competition, Upstage has ambitions for global market penetration. The organization is pursuing opportunities in regions including the UAE and Vietnam with “sovereign AI” frameworks — platforms that operate within national boundaries to maintain data and infrastructure sovereignty.
Cost-effectiveness forms a central element of this strategy. With budget-friendly AI platforms from Chinese developers gaining worldwide momentum, Upstage seeks to provide superior performance at competitive pricing. Utilizing both AMD and Nvidia equipment could enable the company to achieve this equilibrium.
Should the agreement materialize, it would provide a genuine assessment of the MI355’s capabilities in a rigorous, high-pressure operational setting.
AMD stock experienced a decline of approximately 1.92% on Sunday. The consensus recommendation from Wall Street analysts for AMD remains at Moderate Buy, derived from 21 Buy ratings and 8 Hold ratings issued during the past three months. Analysts’ average price target registers at $284.96, suggesting potential upside of about 41% from present trading levels.
