Tech Explained: Here’s a simplified explanation of the latest technology update around Tech Explained: Shinsegae teams up with US tech firm to build Korea’s largest AI data center in Simple Termsand what it means for users..
Shinsegae Group Chairman Chung Yong-jin, second from right, poses with U.S. Secretary of Commerce Howard Lutnick, center, and Reflection AI CEO Misha Laskin, second from left, after the two companies signed a memorandum of understanding in San Francisco, Monday (local time). Courtesy of Shinsegae Group
Shinsegae Group signed a memorandum of understanding with Reflection AI in San Francisco Monday (local time) to build what will become Korea’s largest artificial intelligence (AI) data center, expected to consume 250 megawatts of electricity annually.
Both companies agreed to establish a joint venture by the end of this year to carry out the project.
The partnership between the Korean retail giant and the U.S. tech firm marks the first cooperation under the American AI Exports Program, which was announced last year by the Donald Trump administration.
Following Trump’s executive order last July, the U.S. Department of Commerce has led the program aimed at promoting the export of full-stack American AI technology packages.
After attending the opening of the National AI Data Center overseeing the program, U.S. Secretary of Commerce Howard Lutnick also joined the signing ceremony at the same venue, underscoring Washington’s support for the Korean data center project.
Shinsegae said its partnership with Reflection will help the retailer become an AI cloud operator with the most advanced technologies in Korea, boosting the country’s competitiveness in the global AI market.
“The data center we are building with Reflection AI will not only serve as a new growth engine for Shinsegae but also as a turning point for Korea’s AI ecosystem,” Shinsegae Group Chairman Chung Yong-jin said.
The company also pledged to develop a sovereign AI cloud to serve enterprises and government agencies across Korea.
“With our full-stack AI development for retail, we will be able to manage inventory more efficiently and improve profitability,” a Shinsegae official said. “We also plan to create a faster logistics system to prepare for the coming revolution in deliveries.”
Reflection said it will source GPUs from Nvidia for the new AI data center.
The U.S. firm will provide the technical expertise — including chips, models and full-stack engineering — while Shinsegae secures the infrastructure needs, including the factory’s physical architecture, real estate, power, permitting and financing.
“We have a narrow window to ensure the foundation of intelligence remains open and accessible to everyone, rather than controlled by a few,” Reflection CEO Misha Laskin said.
“South Korea is one of the world’s most technologically ambitious nations and one of America’s closest allies in the Pacific. Together, we’re building AI infrastructure that the Republic of Korea can control, audit and evolve on its own terms.”
Last October, Reflection raised $2 billion in funding from Nvidia and other investors, valuing the company at $8 billion.