Nvidia, a leading semiconductor producer specializing in artificial intelligence (AI), has revealed a proposal to establish a new AI center in Indonesia in collaboration with the government and PT Indosat Ooredoo Hutchison, a telecom provider in the country.

The Indonesian communication minister, Budi Arie Setiadi, mentioned on April 4 that the center, valued at $200 million, will be located in Surakarta city within the Central Java region. Setiadi indicated that the AI center will serve as a facility for telecommunication infrastructure or a human resource center.

Construction of the AI center is anticipated to commence within the current year. The mayor of Surakarta, Gibran Rakabuming Raka, highlighted that the city was chosen due to its preparation with skilled human resources and established 5G infrastructure.

Prior to the recent surge in AI activities following the launch of OpenAI's ChatGPT chatbot in November 2022, Nvidia had signed a memorandum of understanding with the Indonesian government in January 2022. This agreement involved training lecturers and over 20,000 university students in AI skills over five years to enhance the nation's AI talent pool.

Nvidia's decision to expand its influence in Indonesia aligns with a larger trend of strengthening its presence in Southeast Asia, driven by a rise in the demand for generative AI technologies. In Singapore, the collaboration between Nvidia and local telecom company Singtel has paved the way for a new data center, while Nvidia and the Singapore Institute of Technology are jointly working on an AI center.

Noteworthy companies like Google and Microsoft are also heavily investing in AI initiatives worldwide, establishing data centers and educational programs in countries such as Germany, France, and Spain. The pursuit of advanced AI models is spreading into the cryptocurrency industry as well, with Tether Operations Limited announcing an enhancement of its focus on AI and launching recruitment drives to attract top-tier AI talent.