Nvidia announced a strategic agreement with South Korea's SK Hynix to secure high-bandwidth memory (HBM) essential for its advanced processors and systems. The deal, which could be valued at $500 billion over multiple years, includes plans for large-scale data centers expected to be operational by 2027.
This partnership is crucial as Nvidia aims to address the current global memory shortage driven by the AI boom. Raj Mirpuri, Nvidia's enterprise vice president, emphasized that this collaboration will ensure a stable supply of next-generation AI memory.
Additionally, SK Telecom, an affiliate of SK Hynix, will develop a cloud business utilizing Nvidia's Vera Rubin systems, indicating a significant expansion in AI infrastructure beyond just major tech companies. The announcement was made during an AI summit in San Francisco, attended by South Korean officials, including President Lee Jae Myung.
Furthermore, Nvidia plans to invest $1 billion in Naver, a Korean cloud company, to support the development of data centers utilizing its GPUs, which will enhance AI computing capacity for potential customers globally. This agreement marks a pivotal moment in the AI sector, showcasing the increasing involvement of foreign governments and large conglomerates in building out AI infrastructure