Nvidia has taken another bold step in strengthening its dominance in artificial intelligence by securing a long-term partnership with South Korea’s SK Hynix in a deal estimated to be worth $500 billion over several years. The agreement is designed to guarantee a steady supply of high-bandwidth memory (HBM), one of the most critical components powering Nvidia’s advanced AI chips. As global demand for AI computing continues to surge, the partnership places Nvidia in a stronger position to meet the needs of businesses, governments, and cloud providers investing heavily in next-generation artificial intelligence technologies.
Beyond securing memory supplies, the agreement includes plans to build massive AI data centers expected to begin operations in 2027. SK Hynix affiliate SK Telecom will also launch a cloud computing business powered by Nvidia’s cutting-edge Vera Rubin AI systems. Nvidia revealed that the planned infrastructure will require up to 2 gigawatts of power, highlighting the enormous scale of the project, which could eventually support hundreds of thousands of graphics processing units (GPUs) dedicated to AI workloads.
The announcement comes at a crucial time as the global technology industry grapples with a shortage of high-bandwidth memory. HBM has become an essential ingredient for training and running advanced AI models, making it one of the most sought-after technologies in the semiconductor market. Nvidia Enterprise Vice President Raj Mirpuri explained that the collaboration will not only ensure a stable supply of HBM but will also allow both companies to jointly develop the next generation of AI memory, giving Nvidia a competitive advantage as demand continues to outpace supply.
The wave of AI investments extended beyond Nvidia. Samsung Electronics also announced a new memorandum of understanding with semiconductor giant Broadcom to deepen collaboration in memory and chip manufacturing technologies. Valued at an estimated $200 billion, the partnership aims to support the next phase of AI infrastructure development. Meanwhile, Nvidia unveiled an additional $1 billion investment in Korean cloud company Naver to help expand AI data center capacity and make advanced computing resources more accessible to businesses across South Korea and beyond.
The latest agreements signal that the AI revolution is rapidly evolving from a race among a handful of tech giants into a global competition involving governments, telecom companies, semiconductor manufacturers, and cloud providers. Announced during an AI summit in San Francisco attended by South Korean President Lee Jae Myung and other senior officials, the partnership reflects growing international collaboration to build the computing power needed for the future of artificial intelligence. With AI adoption accelerating across industries, Nvidia’s latest move reinforces its position at the center of the world’s expanding AI ecosystem.
source: cnbc
