Shinsegae joins US AI push with new data center deal
South Korean retail giant Shinsegae Group is set to build the nation's largest artificial intelligence data center in partnership with an Nvidia-backed AI firm, in a deal that marks the first test of the Trump administration's push to export American AI technology abroad.
According to the group Tuesday, it signed a memorandum of understanding in San Francisco on Monday with US startup Reflection AI for a data center with a power capacity of 250 megawatts, to be equipped with Nvidia graphics processing units. The two companies plan to establish a joint venture before the end of the year.
The deal is the first to close under the Trump administration's American AI Exports Program, an initiative established by executive order in July 2025 to back the overseas deployment of full-stack American AI packages in order to advance US leadership in AI while curbing reliance on systems from "adversarial nations."
"AI will reshape every facet of industry, economy and human life, and those that fail to embrace it will not survive," said Shinsegae Group Chairman Chung Yong-jin at the signing event. "This collaboration will not only lay the foundation for Shinsegae's future growth, but also advance the AI ecosystem across all of Korea's industries."
US Commerce Secretary Howard Lutnick called the deal historic. "I believe the partnership signed today will become a remarkable moment in history for the Korean government, Korean businesses and Korean consumers," he said.
With decades of retail operations behind it, Shinsegae outlined plans to develop AI built on its own retail insights while driving synergies across its operations.
Its vast consumer data and store network will serve as the foundation for a new generation of AI-powered commerce tools, among them an AI agent that can select personalized products, handle payments and manage delivery end to end. The company is also eyeing a company-wide system incorporating AI to tighten inventory management, improve margins and build faster delivery logistics.
Shinsegae also noted that Reflection AI's focus on open-weight AI models, which allow users to modify and adapt the system while retaining control over their own data, aligns with the Korean government's priority of building secure AI sovereignty.
"Together with Shinsegae, we will create AI infrastructure that Korea can independently evolve," said Reflection AI CEO Misha Laskin.
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