Nvidia has secured key agreements with prominent South Korean firms, including SK Hynix and Naver, to accelerate its artificial intelligence initiatives. Announced on June 8, these deals aim to enhance the supply of crucial memory chips vital for AI technologies.
Strategic Partnerships to Fuel AI Growth
SK Hynix has been Nvidia’s largest memory partner. SK Hynix will continue to be Nvidia’s largest memory partner.
Jensen Huang, CEO of Nvidia
- Multi-year technology partnership with SK Hynix for advanced memory development
- Building a gigawatt-scale AI cloud with SK Telecom
These partnerships come as Nvidia's CEO Jensen Huang visits South Korea, where he has engaged with various industry leaders and participated in local cultural experiences. Nvidia and SK Hynix's agreement focuses on developing advanced memory types to meet the escalating demand for AI data centers.
While the financial terms of the agreements remain undisclosed, Huang emphasized the importance of SK Hynix in Nvidia's supply chain, stating, "We already procure and we buy from SK Hynix already billions and billions of dollars each year, and it’s going to grow substantially."
The collaboration with SK Telecom includes plans to establish an AI cloud infrastructure, with the first data center expected to launch in 2027. Additionally, involvement from Naver and Doosan Group will further bolster AI development capabilities in the region.
The significance of these agreements is underscored by South Korea's status as a global leader in semiconductor manufacturing. Companies like SK Hynix and Samsung Electronics are vital players in the memory chip market, essential for powering AI applications.
Despite a recent downturn in South Korean tech stocks, Huang remains optimistic about the future, suggesting that the current market conditions present a buying opportunity for investors.