Nvidia locks in SK Hynix memory supply as part of $500 billion AI deal
Nvidia said it has locked in a supply of AI memory to South Korea's SK Hynix as the chipmaker seeks to lock down key components for its advanced processors and systems. Nvidia said the deal, announced Friday night in San Francisco, could be worth $500 billion over several years and includes the construction of massive data centers expected to come online in 2027. SK Hynix's affiliate SK Telecom will use Nvidia's Vera Rubin system to build its cloud business. Nvidia says its target capacity requires 2 gigawatts of power, suggesting it's a massive construction project with hundreds of thousands of graphics processors. In a separate deal, South Korean giant Samsung Electronics said it had signed a memorandum of understanding with chip design firm Broadcom to expand cooperation in memory and foundry technology. Samsung said in a statement that the deal, worth about $200 billion, will help support next-generation AI infrastructure. As the AI boom creates a global memory shortage, Nvidia is aggressively locking in supplies of high-bandwidth memory, which is critical for its GPUs and systems. According to analysts, SK Hynix is the leader in HBM production. "This expansion will include our co-development opportunities on next-generation SK Hynix AI memory, which will help us ensure a stable supply of HBM memory," Nvidia corporate vice president Raj Mirpuri said on a conference call with reporters. The agreement also shows that large-scale AI infrastructure construction is moving beyond a handful of hyperscale companies, with foreign governments and large corporate groups beginning to participate. The agreement was announced at an AI summit in San Francisco attended by South Korean officials including President Lee Jae-myung. Nvidia also said on Friday it would invest $1 billion in Naver, a South Korean cloud company that builds data centers around its GPUs. Nvidia said the project will provide potential customers in South Korea and around the world with the opportunity to acquire AI computing capabilities before the 200 MW capacity is built. SK hynix, South Korea’s second-largest company by market capitalization, IPO as part of an effort to finance infrastructure development.