Hyundai bets on AI to fast‑track American ship orders and beat old‑school delays

Markets 2025-11-27 09:33

Hyundai is moving to plug artificial intelligence into the middle of the broken US shipbuilding system.The idea is simple.Use South Korea’s factory skill and match it with American computing power.

The goal is to push ships out faster and cut years off delivery times. US shipyards have struggled for decades. Now AI is being sold as the reset button.

This push lands as South Korea ties its industrial future closer to the US.Seoul has pledged $150 billion to jump‑start America’s near‑dead shipbuilding sector.That money sits inside a wider trade deal with Donald Trump.

The strategy also carries a second goal. South Korea wants to raise its global role and shift how the world sees its position next to China.

Hyundai links Korean factories with U.S. computing power

HD Hyundai Heavy Industries, the group’s ship unit, said AI can connect what both countries do best. South Korea brings hard production skills.

The US brings top‑tier digital platforms and data power. The company says this mix could modernize US shipyards from the ground up.

“We have production expertise, and the US has advantages in digital platforms,” said Aerin Jungmin Lee, who leads AI strategy at Hyundai. “If we can leverage the US’s exceptional computing resources, it would significantly speed up research, including model development and processing, and ultimately serve as a foundation for building smart shipyards.”

The company is already working with US tech firms. The list includes Google, Palantir, and Anduril. All projects involve AI‑based systems tied to production and defense‑linked work. Hyundai said it remains open to more US partnerships as the model expands.

Labor remains a pressure point.Nomura has warned that Korean builders face worker shortages, rising costs, and weak supply chains if they redirect major resources to the American market.

Lee said AI can help ease that strain by reducing the need for missing skills and by keeping knowledge inside systems.

The company already rolled out one live tool. An AI translation system now supports 12,000 workers from 17 countries across three shipyards. The tool lets crews talk in real time without language delays.

Later this year, Hyundai plans to launch a “Shipbuilding AI Master Agent.” The system will give live diagnostics for design and production. It will also run data analysis aimed at keeping know‑how inside software even after senior engineers retire.

Lee joined Hyundai in 2023 after moving over from Hyundai Motor Co. Since then, she has overseen the build‑out of the group’s next‑generation AI platform. The platform ties ship design directly into production systems. She said it could roll into US shipyards without a full rebuild.

“I believe AI will accelerate global industry restructuring,” Lee said. “It can be the most realistic solution to the structural limitations that not just us, but Korea faces as a whole, while helping us respond to competition against China or mitigate external uncertainty including tariffs.”

Trump launches Genesis Mission to flood AI into federal research

The US side of the equation moved this week. Donald Trump signed an executive order on Monday that created the Genesis Mission. The program sets up a federal push to expand AI across government research.

The goal is tighter coordination across agencies and deeper use of AI tools inside science programs. Michael Kratsios, head of the White House Office of Science and Technology Policy, briefed reporters before the signing.

The mission will tap the computing power of the Department of Energy’s national labs. That setup will unlock federal datasets and allow more AI‑driven experiments. Kratsios said the result should shorten the time needed for scientific breakthroughs.

Private companies will feed the system with hardware. A senior administration official said Nvidia, Dell, HPE, and AMD will expand supercomputing resources at the labs. The official pointed to recent industry announcements as templates for new deals tied to the order.

Officials said the AI push will target materials engineering, health science, and energy research. They also tied the program to production growth and price pressure. Lower costs remain a top political issue as voters focus on living expenses.

“With the power of AI, America is on the brink of a scientific revolution,” Kratsios said Monday.

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