Nvidia locks down memory supply from SK Hynix as part of $500 billion AI deal
Nvidia recently secured a significant AI memory supply agreement with South Korea's SK Hynix. The deal, announced in San Francisco, potentially reaches a value of $500 billion over several years. This partnership focuses on locking in high-bandwidth memory, a critical component for Nvidia’s advanced processors and systems. Beyond hardware supply, the agreement includes the construction of large-scale data centers scheduled for 2027.
SK Hynix affiliate SK Telecom will utilize Nvidia’s Vera Rubin systems to build a cloud business. Nvidia projects this infrastructure will eventually require 2 gigawatts of power, signaling a massive expansion involving hundreds of thousands of graphics processing units. This move comes as the industry faces a global shortage of high-bandwidth memory, an area where SK Hynix currently maintains a production lead.
Nvidia’s expansion strategy also includes a $1 billion investment into Naver. This project aims to construct data centers centered on Nvidia GPUs, providing computing capacity to customers in South Korea and global markets. The deal was finalized at an AI summit attended by South Korean officials, including President Lee Jae Myung.
This agreement marks a shift in how AI infrastructure projects are funded and developed. Massive buildouts are moving beyond standard hyperscalers to include foreign governments and large conglomerates. Additionally, Samsung Electronics announced a separate $200 billion collaboration with Broadcom focused on memory and foundry technologies. These moves highlight the intense competition for resources required to support the next generation of computing.