Genesis, South Korea's pioneering independent luxury car brand, has made a bold statement in the high-performance vehicle sector to celebrate its 10th anniversary. In a market where established names like Rolls-Royce, Bentley, Mercedes-Benz, and BMW have been around for over a century, Genesis created a stir by ranking 10th among luxury brands within a decade. Thanks to the brand's success, Hyundai Motor Company has emerged as the third-largest automaker globally by sales volume and the second most profitable automaker worldwide, after Toyota and Volkswagen. The brand was driven by Chung Eui-sun, chairman of the Hyundai Motor Group, who oversaw the entire pre-launch process from the initial planning stages to hiring external staff and restructuring the organization.

◇High-performance model set to debut next January

Hyundai Motor Company introduced the GV60 Magma, the inaugural mass-produced vehicle from its high-performance line 'Magma,' during a 10th-anniversary celebration for Genesis held on the 20th (local time) near Le Castellet in southern France. Magma, the first sub-brand of Genesis, represents "energy with immense potential," drawing inspiration from molten rock that is heated and pressurized deep beneath the surface before a volcanic eruption.

The GV60 Magma is a high-performance electric SUV with a vibrant orange paint job, a top power output of 650 horsepower, and can accelerate to 200 km/h in 10.9 seconds. It incorporates a distinctive '3-hole' design—three vents on the front bumper and sides—on its more expansive and lower body than the standard GV60. Additionally, it includes a wing-style 'rear spoiler' that enhances downforce when driving at high speeds. The price has not been finalized yet, and it is set to launch next January.

The interior includes orange highlights throughout and has Magma-specific bucket seats with electric adjustments, offering a distinct atmosphere compared to current Genesis models. Pressing the orange 'Magma' button located below the left side of the steering wheel enables drivers to select between 'Sprint' (maximum performance), 'GT' (balanced performance and efficiency), or 'My' (personalized settings). Activating the 'Boost' button beneath the right side of the wheel temporarily boosts the vehicle's power and torque for up to 15 seconds, creating the feeling of the car launching forward.

Jose Munoz, CEO of Hyundai Motor Company, stated, "This is the time when Genesis evolves from a newly established 'luxury' brand into a 'luxury high-performance' brand. During the next ten years, a 'Magma Superhero Version' will be introduced for each Genesis model."

Hyundai also introduced the 'G90 Wingback Concept,' which merges a sporty design with the premium sedan G90, and the 'Magma GT Concept,' a sports car featuring doors that open upwards like wings. A company representative stated that the Magma GT Concept is "an ideal model showcasing Genesis' vision for the next decade," noting, "It embodies sophisticated tastes and the essence of motorsports."

Munoz, the CEO, stated, "By 2030, Magma models will make up 10% of Genesis' overall sales," then added, "Magmamia!"—a twist on the Italian expression "Mamma mia!" which translates to "My goodness!" with "Magma" replacing "Mamma."

◇Increasing motorsport activities to improve financial gains

Initially associated with calm 'executive vehicles,' Genesis is now competing in the high-performance sector, as it believes that high performance is crucial for its brand strategy in the coming decade. This segment includes strong competitors such as Porsche, BMW M, and Mercedes-Benz AMG, which attract driving enthusiasts. For Genesis, which has seen significant growth in the luxury market over the last ten years, entering this area is vital to broaden its dedicated customer base and adopt a profitable approach.

Luc Donckerwolke, the Global Design Head and President of Hyundai Motor Group's CDO (Chief Design Officer) and CCO (Chief Creative Officer), stated, "Many brands focus on bold, extreme driving experiences, but we aim for harmony. Magma is a 'more playful Genesis' that stays enthusiastic yet controlled."

Hyundai plans to boost Genesis sales from the present annual figure of 225,000 units to 350,000 units—a rise of 55%—by 2030, with Magma driving this expansion.

To strengthen Magma, Hyundai introduced the motorsports team 'Genesis Magma Racing (GMR)' in December of the previous year. Rather than concentrating on speed-focused competitions, GMR intends to compete in endurance events such as the 24 Hours of Le Mans to demonstrate Magma's toughness and dependability.

Hyundai selected Le Castellet as the venue for revealing Magma's first mass-produced model due to its hosting of the 'GMR Workshop,' which acts as the base for 50 employees, including the GMR team's director and drivers, along with a racing track. Within the workshop, the orange racing car 'GMR-001 Hypercar' was showcased. The car's exterior includes the Hangeul word 'Magma' in several locations, while the team's logo on the wall is a geometric design that looks like 'ㅁㄱㅁ,' drawing inspiration from Hangeul. The GMR team intends to participate in the Hypercar class of the World Endurance Championship (WEC) next year using this vehicle.

A representative from Hyundai Motor Company said, "Through the Magma Racing team, we will carry out R&D trials that push technological boundaries, and establish a positive feedback loop where the outcomes are integrated into Magma production models."

◇ Ongoing Conversations About the AI Bubble

Economists consider the present surge in AI to be a historic milestone. The current funding allocated to the AI industry equals 17 times the investments made in internet firms right before the dot-com crash in the early 2000s. Nvidia, an artificial intelligence company, has a market value of 4.6 trillion dollars, surpassing the economic scale of all nations except the United States, China, and Germany.

However, numerous companies feel that AI has not yet resulted in measurable profit gains. A McKinsey study revealed that around 80% of firms that have implemented AI reported that it has had "no meaningful effect on profits." Additionally, Sam Altman, CEO of OpenAI, recently mentioned that certain areas of the industry are "quite overhyped." This is why some experts predict that the AI sector might face a downturn soon.

◇ Investigation Persists Following the Collapse of the Bubble

On the other side, there are predictions that new scientific advancements might only start once the AI hype subsides. John Turner, an economist from Queen’s University Belfast, stated, "Even following the collapse of the dot-com bubble, the number of papers in electronic engineering, computer engineering, and science disciplines actually rose, and the growth of internet and mobile technologies did not stop." In essence, research persisted despite industrial disruptions.

Experts think a comparable scenario might arise even if the AI bubble bursts. Brent Goldfarb, an economist from the University of Maryland, remarked, “Should the AI bubble burst, widespread job cuts are expected in AI startups or emerging firms, with only big companies such as Google, Nvidia, and OpenAI likely to endure.” Nonetheless, he noted that over time, AI expertise might shift to different areas and drive fresh technological advancements.

Professor Turner also mentioned, "Following the collapse of the British bicycle market in 1896, bicycle mechanics who had lost their jobs contributed to the development of the motorcycle, car, and aviation industries. In a similar way, after the dot-com bubble burst, the internet expanded even more rapidly."

◇ Experts from Companies to Showcase 'More Advantageous Technologies'

David Kirsch, a technology historian at the University of Maryland, expressed a comparable viewpoint. He stated, "If individuals who lose their positions in the industry because of an AI downturn go back to academic settings, they might develop technologies that offer significant advantages to society." For instance, this could result in innovations such as DeepMind's AI program 'AlphaFold,' which played a key role in addressing the 50-year-old challenge of predicting protein structures.

*Nature* also noted, “These kinds of initiatives have already started.” For example, this year, leading AI researchers from OpenAI, Meta, and Google departed their organizations to establish the materials science company 'Periodic Labs.' The firm's motto is, "Our objective is to build an AI scientist." It seeks to create AI systems for experiments and simulations that can be directly applied by university laboratories, national research institutions, and hospitals.

Yann LeCun, who previously served as Meta's lead AI scientist, recently stated, "I will depart the company later this year to launch a startup dedicated to exploring a novel type of advanced AI research." LeCun is said to have made this choice following Meta's CEO, Mark Zuckerberg, emphasizing the need for "AI superintelligence." He is now concentrating on developing "world models" that offer advantages to science, robotics, and society, rather than focusing on commercial large language models (LLMs). The aim is to build an AI brain capable of thinking and acting like a human, assisting in long-term decision-making.