Nvidia locks down memory supply from SK Hynix as part of $500 billion AI deal
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.
Nvidia secures long-term AI memory deal with SK Hynix amid global infrastructure push
Nvidia has secured a long-term supply of advanced AI memory from South Korea’s SK Hynix as it moves to guarantee a steady flow of critical components for its next-generation AI chips and systems.
The agreement, announced in San Francisco on Friday, could be worth up to $500 billion over several years. It also includes plans to build large-scale AI data centres expected to begin operations in 2027.
As part of the partnership, SK Telecom will develop a cloud computing business powered by Nvidia’s upcoming Vera Rubin systems. Nvidia said the project is expected to require 2 gigawatts of power, signalling one of the world’s largest AI infrastructure deployments with hundreds of thousands of GPUs.
The deal comes as Nvidia races to secure supplies of high-bandwidth memory (HBM), a key component for AI processors that remains in short supply due to soaring global demand. SK Hynix is widely regarded as the industry leader in HBM production.
“The expansion will include a co-development opportunity on next-generation SK Hynix AI memory, helping us secure a stable HBM supply,” said Raj Mirpuri, Nvidia’s Enterprise Vice President.
The partnership also reflects a broader shift in the AI industry, with governments and major corporations increasingly investing in large-scale AI infrastructure beyond the traditional hyperscale cloud providers.
The announcement was made during an AI summit in San Francisco attended by South Korean President Lee Jae Myung and other government officials.
- Separately, Nvidia revealed it will invest $1 billion in South Korean cloud company Naver to support the construction of AI data centres powered by Nvidia GPUs. The project will deliver 200 megawatts of AI computing capacity, giving businesses in South Korea and other markets access to high-performance AI infrastructure.
SK Hynix, South Korea’s second-most valuable company, recently listed on the Nasdaq to help fund its growing infrastructure ambitions.
