Key Highlights
- Nvidia and SK Group have forged a strategic alliance exceeding $500 billion in value focused on AI infrastructure development.
- SK Telecom plans to construct a 2-gigawatt AI factory utilizing Nvidia’s Vera Rubin platforms equipped with SK Hynix HBM4 memory technology.
- The inaugural facility is slated for operational launch in 2027.
- Nvidia announced a separate $1 billion investment in Korean cloud provider Naver to accelerate data center buildout.
- Samsung Electronics concurrently signed a $200 billion MOU with Broadcom focused on memory chips and foundry capabilities.
Nvidia has finalized a strategic long-term agreement with South Korea’s SK Hynix to guarantee AI memory chip supply, forming part of an expansive collaboration with SK Group totaling more than $500 billion. The landmark partnership was unveiled late Friday during an AI summit held in San Francisco, with South Korean dignitaries in attendance, including President Lee Jae Myung.
NVDA shares finished trading at $206.84, reflecting a decline of 0.92%, while after-hours activity remained relatively flat.
The comprehensive agreement encompasses both AI factory development and AI memory chip procurement. SK Telecom, operating under the SK Group umbrella, plans to construct a 2-gigawatt AI cloud infrastructure leveraging Nvidia’s DSX platform alongside Vera Rubin accelerated computing architecture. The facility is projected to become operational by 2027.
SK Hynix currently dominates high-bandwidth memory manufacturing, prompting Nvidia to aggressively secure supply commitments amid a worldwide HBM shortage driven by explosive AI demand.
“The expansion will include a co-develop opportunity for us on the next-generation SK Hynix AI memory, and this will help us secure a stable supply of HBM memory,” said Raj Mirpuri, Nvidia’s enterprise vice president.
Both organizations will jointly develop and refine next-generation AI memory technologies, encompassing advanced high-bandwidth memory iterations that extend beyond the upcoming HBM4 standard.
Expanding AI Infrastructure Across Asia-Pacific
This collaboration demonstrates that massive AI infrastructure initiatives are increasingly involving sovereign governments and multinational conglomerates, moving beyond the traditional hyperscaler-dominated landscape.
Jensen Huang highlighted South Korea’s positioning as an emerging AI superpower, emphasizing the nation’s robust telecommunications networks, established data center capabilities, semiconductor expertise, and manufacturing capacity.
SK Group Chairman Chey Tae-won emphasized that succeeding in the AI revolution requires not merely deploying AI applications, but maximizing the production of computational intelligence itself.
Nvidia additionally revealed a $1 billion capital injection into Naver, a South Korean cloud infrastructure provider developing data centers centered around Nvidia GPU technology. This initiative aims to deliver 200 megawatts of computing capacity, providing Korean and international clients with expedited access to AI computational resources.
Samsung and Broadcom Forge Parallel Agreement
In a related development, Samsung Electronics executed a $200 billion memorandum of understanding with Broadcom to deepen cooperation spanning memory chip production and foundry operations. Samsung characterized the agreement as essential infrastructure supporting next-generation AI systems.
SK Hynix completed its Nasdaq listing earlier this month as a strategic move to fund its ambitious infrastructure expansion initiatives.
SK Group ranks as South Korea’s second-largest business conglomerate, encompassing over 175 affiliated entities and employing more than 100,000 professionals globally. The group maintains diverse operations spanning artificial intelligence, semiconductor manufacturing, energy production, and life sciences sectors.
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