Key Highlights
- Nvidia has entered a strategic alliance with SK Group exceeding $500 billion in value, focused on developing AI infrastructure.
- SK Telecom plans to construct a 2-gigawatt AI processing facility utilizing Nvidia’s Vera Rubin architecture and SK Hynix’s HBM4 memory technology.
- Operations at the initial installation are projected to begin in 2027.
- A separate $1 billion Nvidia investment targets Korean cloud provider Naver to boost data center capabilities.
- Samsung Electronics also revealed a $200 billion memorandum with Broadcom addressing memory chips and foundry services.
Nvidia has finalized a comprehensive AI memory procurement arrangement with SK Hynix of South Korea, forming part of an expansive collaboration with SK Group worth more than $500 billion. The strategic partnership was unveiled late Friday during an artificial intelligence summit held in San Francisco, with South Korean dignitaries present, including President Lee Jae Myung.
Shares of NVDA settled at $206.84, declining 0.92% during Friday’s session, while after-hours activity remained largely flat.
This comprehensive arrangement encompasses both AI factory development and artificial intelligence memory procurement. SK Telecom, operating under the SK Group umbrella, will construct a 2-gigawatt AI cloud infrastructure leveraging Nvidia’s DSX platform alongside Vera Rubin accelerated computing technology. Operations are anticipated to commence in 2027.
SK Hynix dominates the high-bandwidth memory manufacturing sector, and Nvidia has been aggressively securing supply chains amid an AI-driven global HBM capacity crunch.
“This expansion creates a collaborative development pathway for next-generation SK Hynix AI memory technology, ensuring we maintain reliable access to HBM memory supplies,” stated Raj Mirpuri, enterprise vice president at Nvidia.
Both organizations will jointly engineer and refine cutting-edge AI memory technologies, encompassing upcoming high-bandwidth memory iterations extending past HBM4.
Expanding AI Infrastructure Footprint Across Asia-Pacific
This alliance demonstrates that massive AI infrastructure development has evolved beyond hyperscale cloud providers. National governments and multinational corporations are now actively participating as major stakeholders.
CEO Jensen Huang emphasized that South Korea possesses the fundamental assets necessary to emerge as a worldwide AI leader, citing its telecommunications infrastructure, data center ecosystem, semiconductor expertise, and manufacturing capacity.
SK Group Chairman Chey Tae-won noted that competitive advantage in the artificial intelligence age hinges not merely on AI application, but on the capacity to generate computational intelligence at scale.
Nvidia simultaneously disclosed a $1 billion capital commitment to Naver, a Korean cloud infrastructure provider constructing data centers centered on Nvidia GPU technology. This initiative targets 200 megawatts of processing power and aims to deliver South Korean and international clients expedited access to AI computational resources.
Samsung Announces Complementary Broadcom Partnership
In a parallel development, Samsung Electronics formalized a $200 billion memorandum of understanding with Broadcom to deepen cooperation spanning memory solutions and foundry operations. Samsung characterized this agreement as supporting next-wave AI infrastructure requirements.
SK Hynix completed its Nasdaq listing earlier this month as part of its strategy to fund infrastructure expansion initiatives.
SK Group ranks as South Korea’s second-largest business conglomerate, encompassing more than 175 affiliated entities and employing over 100,000 people globally. Its operations span artificial intelligence, semiconductor manufacturing, energy production, and life sciences sectors.
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