Nvidia (NVDA) has agreed to expand its partnership with South Korean conglomerate SK Group with a more than $500 billion artificial intelligence infrastructure initiative.
The deal announced Saturday includes a long-term partnership between Nvidia and SK hynix (SKHY) that will provide the US technology giant a stable supply of next-generation AI memory. They will also jointly co-develop next-generation AI memory solutions that include high-bandwidth memory chips intended for AI training, AI agents and physical AI applications.
Also part of the agreement is the recently-announced plan by SK Telecom to build a 2-gigawatt-scale AI cloud in its home country using the Nvidia DSX platform. The infrastructure will also be powered by Nvidia Vera Rubin chips.
"Together with SK Telecom and SK hynix, we are building a new generation of AI factories that will power Korea's next wave of growth," Nvidia Chief Executive Jensen Huang said.
Nvidia and SK Group said they have signed letters of intent to formalize the agreement. The first AI factory to be built under their AI cloud collaboration is expected to begin operations in 2027.
The goal is to speed up development of large-scale AI infrastructure to meet growing AI demand across the Asia-Pacific region, they said.
"By leveraging SK hynix's AI memory and SK Telecom's AI infrastructure capabilities, SK will collaborate with Nvidia to build a world-class AI factory, helping Korea transcend its role as a leading adopter of AI and become a global hub that drives AI innovation," SK Group Chairman Chey Tae-won said.
Shares of Nvidia were down 3.7% in Monday morning trade, while SK hynix was more than 9% lower.
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