South Korean artificial intelligence startup Upstage is in discussions with Advanced Micro Devices (AMD) to purchase 10,000 AI chips, according to multiple reports. The potential deal represents a significant hardware acquisition for the Korean AI company as it seeks to expand its computational capabilities.

The negotiations highlight the growing demand for specialized AI chips in Asia's technology sector, particularly as companies race to develop and deploy artificial intelligence applications. AMD has been positioning itself as an alternative to Nvidia in the competitive AI chip market.

Upstage, which focuses on AI language models and enterprise solutions, would use the chips to enhance its machine learning infrastructure and support its various AI services. The company has been expanding its presence in the Korean market and seeking to compete with larger international AI firms.

The potential purchase comes amid broader trends in the semiconductor industry, where AI chips have become increasingly valuable commodities. Companies across Asia are investing heavily in AI infrastructure to support growing demand for machine learning applications and services.