Jensen Huang, chief executive officer of Nvidia Corp., speaks to members of the media following the company’s “Japan AI Ecosystem” reception in Tokyo, Japan, on Thursday, July 16, 2026.
Kiyoshi Ota | Bloomberg | Getty Images
Nvidia has secured a critical supply of AI memory from South Korea’s SK Hynix, a move poised to solidify its position in the rapidly expanding artificial intelligence hardware market. This strategic agreement, announced on Friday, is set to be a cornerstone of the chip giant’s offensive to ensure unfettered access to essential components for its cutting-edge processors and sophisticated AI systems.
The deal, estimated to be worth a staggering $500 billion over several years, not only guarantees a crucial supply chain for Nvidia but also heralds the commencement of large-scale data center construction projects, slated to become operational by 2027. This ambitious expansion underscores Nvidia’s commitment to meeting the insatiable demand for AI-driven computing power.
As part of this comprehensive partnership, SK Telecom, an affiliate of SK Hynix, will spearhead the development of a cloud business leveraging Nvidia’s advanced Vera Rubin systems. The sheer scale of Nvidia’s ambition is evident in its target of harnessing 2 gigawatts of power for these new facilities, signaling a massive infrastructure buildout that will likely necessitate hundreds of thousands of high-performance graphics processing units.
The AI boom has undeniably created a global shortage of high-bandwidth memory (HBM), a component that is absolutely indispensable for the optimal functioning of GPUs and AI systems. Nvidia’s proactive approach in securing HBM supply demonstrates a keen understanding of market dynamics. SK Hynix, recognized by industry analysts as a leader in HBM production, is therefore a pivotal partner in this endeavor.
“This expansion represents a co-development opportunity with us on SK Hynix’s next-generation AI memory, which will be instrumental in securing a stable supply of HBM memory,” stated Raj Mirpuri, Nvidia’s enterprise vice president, during a call with reporters. This collaboration highlights a shared vision for innovation and supply chain resilience.
Beyond solidifying its own supply chain, this agreement serves as a powerful indicator that the development of massive AI infrastructure is no longer the exclusive domain of a few hyperscale cloud providers. Foreign governments and large corporate conglomerates are increasingly stepping into the arena, signaling a broadening ecosystem and a more diversified approach to AI deployment.
The strategic pact was formally unveiled at an AI summit held in San Francisco, attended by high-ranking South Korean officials, including President Lee Jae Myung, underscoring the geopolitical significance of this technological collaboration.
Adding further momentum to its South Korean initiatives, Nvidia also announced a $1 billion investment in Naver, a prominent Korean cloud company actively constructing data centers designed to accommodate Nvidia’s GPUs. Nvidia anticipates this project will offer prospective customers in South Korea and globally an opportunity to secure vital AI computing capacity prior to the completion of 200 megawatts of dedicated infrastructure.
The strategic significance of SK Hynix cannot be overstated. As South Korea’s second-most valuable company, its recent listing on the Nasdaq earlier this month was strategically timed to facilitate the financing of these critical infrastructure developments, a testament to its forward-looking financial strategy.
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