Overview

Nvidia and South Korea's SK Group have unveiled an artificial‑intelligence infrastructure programme valued at more than US$500 billion. The initiative spans the construction of large‑scale AI data centres and the development of next‑generation high‑bandwidth memory (HBM) technologies.

Key Partnerships and Agreements

  • Nvidia‑SK Hynix Long‑Term Supply Deal: The two companies signed a long‑term agreement that secures SK Hynix as Nvidia’s primary supplier of advanced memory chips. The pact includes joint development of HBM for AI training, autonomous agents and physical‑AI applications. An earlier agreement was expected to run for over two years with extension options, reflecting accelerating demand from AI servers, robotics and supercomputers. SK Hynix also announced a plan to double its wafer production capacity by 2030.
  • SK Telecom Two‑Gigawatt AI Data Centre: SK Telecom will build a 2‑GW AI data centre powered by Nvidia’s Vera Rubin processors and SK Hynix’s HBM4 memory. The first facility is slated to become operational in 2027. This expands on SK Telecom’s prior commitment to a gigawatt‑scale AI cloud in South Korea, with funding anticipated from global technology firms, overseas capital and other strategic partners.
  • Nvidia‑Naver‑Brookfield Collaboration: In a separate project, Nvidia, South Korean internet firm Naver, and Brookfield Asset Management will expand Naver’s AI data‑centre operations in South Korea. Brookfield contributes access to power and data‑centre infrastructure and brings a $10 billion fund that is part of its broader $100 billion AI infrastructure programme, of which Nvidia is an industry partner.

Strategic Implications

The projects position South Korea’s memory‑chip manufacturing base at the centre of Nvidia’s strategy to expand computing capacity across Asia. By aligning memory production more closely with Nvidia’s chip‑development schedule, the partnership aims to alleviate the high‑bandwidth memory constraint that has become a bottleneck in the AI supply chain.

Funding and Investment Outlook

While specific financing details for the SK Telecom data centre were not disclosed, the overall initiative may involve contributions from global technology companies, overseas investors and other strategic partners, reflecting the scale of the $500 billion valuation.