Nvidia has announced a significant agreement with South Korea's SK Hynix to secure AI memory supply, a move aimed at locking in a key component for its advanced processors and systems amid a global memory shortage driven by the AI boom [1]. The deal, revealed at an AI summit in San Francisco attended by South Korean officials including President Lee Jae Myung, could be worth $500 billion over a number of years and includes the construction of large-scale data centers expected to come online in 2027 [1].
As part of the agreement, SK Hynix affiliate SK Telecom will build a cloud business utilizing Nvidia's Vera Rubin systems, with Nvidia targeting enough capacity to require 2 gigawatts of power—indicative of a massive buildout involving hundreds of thousands of graphics processing units [1]. Nvidia's enterprise vice president, Raj Mirpuri, stated that the expansion will include a co-development opportunity on next-generation SK Hynix AI memory, ensuring a stable supply of high-bandwidth memory (HBM), which is essential for Nvidia's GPUs and systems [1]. Analysts cited in the article note that SK Hynix is the leader in HBM production [1].
The agreement signals that large-scale AI infrastructure projects are expanding beyond traditional hyperscalers, with foreign governments and major conglomerates now participating [1]. In addition to the SK Hynix deal, Nvidia announced a $1 billion investment into Naver, a Korean cloud company building data centers around Nvidia's GPUs. This project is expected to provide potential customers in South Korea and globally with access to AI computing capacity before the completion of 200 megawatts of capacity [1].
SK Hynix, identified as South Korea's second most valuable company, recently listed on the Nasdaq to help finance these infrastructure developments [1].
CONCLUSION
Nvidia's $500 billion agreement with SK Hynix marks a major step in securing critical AI memory supply and expanding global AI infrastructure. The deal, along with Nvidia's $1 billion investment in Naver, underscores the company's aggressive strategy to meet surging AI demand and signals broader industry participation in large-scale AI projects. Market implications are significant, with Nvidia and its partners poised to benefit from enhanced capacity and supply chain stability.