South Korea’s push to become a global force in artificial intelligence is gaining momentum, with chip startup DEEPX stepping into a larger role alongside industrial heavyweight Hyundai Motor Group.

The two companies are expanding their partnership to develop an advanced computing platform designed for generative AI-powered robots. At the center of this effort is DEEPX’s upcoming second-generation low-power chip, the DX-M2, which is expected to enter mass production next year using cutting-edge 2-nanometer manufacturing from Samsung Electronics.

The collaboration signals a broader ambition: enabling robots to process complex AI tasks directly on-device, without relying on cloud connectivity. DEEPX specializes in neural processing units (NPUs), chips built to handle AI workloads efficiently in machines ranging from factory systems to autonomous vehicles. Its existing chips are already deployed in Hyundai’s delivery robots, underscoring the practical traction of its technology.

Chief Executive Lokwon Kim, a former Apple engineer, says the next generation of chips is tailored for generative AI applications—technology that allows machines to learn from experience in ways similar to systems like ChatGPT. This could be especially critical for humanoid robots, where power efficiency and thermal management remain major engineering hurdles.

DEEPX claims its current chips are significantly more energy-efficient and cost-effective than comparable solutions such as Nvidia’s Jetson Orin, positioning the company as a competitive player in a field dominated by larger global chipmakers.

The partnership aligns with Hyundai’s own robotics ambitions. The automaker recently introduced its humanoid robot, Atlas, and plans to scale production dramatically, targeting a manufacturing capacity of 30,000 robot units annually by 2028. According to Hyundai’s robotics leadership, the collaboration with DEEPX is part of a broader strategy to build a robust ecosystem of AI hardware partners both domestically and internationally.

Meanwhile, DEEPX is preparing for its next phase of growth. The company is in discussions with government bodies and investors to raise more than 600 billion won (approximately $408 million) in a funding round ahead of a planned initial public offering in South Korea. A future secondary listing in the United States via depositary receipts is also under consideration.

Backed by customers including Baidu, DEEPX is targeting $40 million in revenue this year, as it rides a wave of national support aimed at establishing South Korea as a global leader in AI innovation.

As competition intensifies in the race to power next-generation robotics, DEEPX’s bet on efficient, on-device AI computing could place it at the forefront of a rapidly transforming industry.