Nvidia and South Korea’s SK Group have announced a multi-year AI initiative valued at more than $500 billion, marking one of the largest collaborations in artificial intelligence infrastructure and semiconductor development to date.
The partnership combines investments in next-generation AI data centers, advanced memory technologies, and long-term semiconductor supply agreements aimed at supporting the rapidly growing demand for generative AI, AI agents, and future intelligent computing platforms.
A central component of the initiative is a long-term strategic partnership between Nvidia and SK Hynix. Under the agreement, SK Hynix will provide next-generation memory solutions for Nvidia’s AI processors while the two companies collaborate on developing future generations of High Bandwidth Memory (HBM) technologies.
HBM has become one of the most critical components of modern AI systems, providing the ultra-fast data transfer speeds required by advanced graphics processors during AI model training and inference. As AI models continue to increase in size and complexity, demand for high-performance memory is expected to remain one of the fastest-growing segments of the semiconductor industry.
The infrastructure portion of the initiative will be led by SK Telecom, which plans to construct a 2-gigawatt AI data center powered by Nvidia’s upcoming Vera Rubin AI architecture together with SK Hynix’s HBM4 memory. The first facility is expected to become operational in 2027, representing a major expansion of South Korea’s AI computing capacity.
A 2-gigawatt campus would rank among the world’s largest AI-focused data center developments, reflecting the enormous computing resources required to support next-generation artificial intelligence applications.
Beyond the new infrastructure project, Nvidia also announced plans to expand AI computing capacity in South Korea through a separate collaboration with Naver and Brookfield. The companies intend to increase the scale of Naver’s AI data center operations, further strengthening the country’s position as an emerging regional AI infrastructure hub.
The announcement highlights how AI investment is increasingly extending beyond processors alone. Modern AI systems depend on an integrated ecosystem of advanced GPUs, high-bandwidth memory, networking technologies, and hyperscale data centers working together to deliver the computational performance required for enterprise AI workloads.
For Nvidia, the partnership helps secure long-term access to one of the world’s most important suppliers of advanced AI memory. For SK Group and SK Hynix, it reinforces their strategic role within the global AI supply chain as demand for HBM continues to accelerate.
The initiative also underscores a broader industry trend in which technology companies are forming long-term strategic alliances to secure semiconductor supply, expand AI infrastructure, and reduce supply chain uncertainty as global competition for AI computing resources intensifies.