Global AI computing giant Nvidia has announced a series of deals in South Korea with tech giants including SK Hynix and Naver, with the goal of securing crucial memory chips to power its upcoming AI projects.
Without disclosing too many details about the deal, SK Group, South Korea’s second-largest family-owned conglomerate, said its SK Hynix and SK Telecom arms had agreed deals with Nvidia.
“Memory chip maker SK Hynix signed a multi-year technology partnership that will see it commit to developing advanced types of memory for global AI data centers,” SK Group said.
“SK Hynix has been Nvidia’s largest memory partner. SK Hynix will continue to be Nvidia’s largest memory partner,” Nvidia CEO Jensen Huang said after a meeting with SK Group Chairman Chey Tae-won. The tech boss also said that the deal with SK Hynix, a rival to Samsung Electronics and US-based Micron Technology, was for more than two years with the option to keep the partnership extending.
“We already procure and we buy from SK Hynix already billions and billions of dollars’ worth each year, and it’s going to grow substantially,” he said.
Ryu Young-ho, a senior analyst at NH Investment & Securities, told Reuters that the SK Hynix-Nvidia partnership reinforced the view that memory chips were evolving from a commodity product into a more customer-specific business.
SK Telecom will be building a gigawatt-scale AI cloud in South Korea using Nvidia technology, with the first AI data center expected to come online in 2027. Internet giant Naver and South Korean multinational conglomerate Doosan would also be using Nvidia’s technology to help build AI data centers.
“Nvidia is also partnering with LG Group on electronics, mechanical systems, and AI for humanoid robots,” Huang said after a meeting with the tech conglomerate’s chairman, Koo Kwang-mo. The companies are also working on the architecture of future data centers, including cooling, power delivery, and the entire design and building of the facilities.
Huang’s busy yet productive South Korea visit also saw the Nvidia boss meeting Hyundai Motor Group’s executive chair, Euisun Chung, where he announced the AI computing giant deepening its partnership with the automaker across a range of AI initiatives, including autonomous mobility, robotics, and AI-powered manufacturing.
Huang also sees the Nvidia-Hyundai partnership having the scope of accelerating the development of industrial robotics, with the goal of bringing AI to “all forms of mobility” and deepening collaboration on robotics for practical industrial applications. During the meeting with Chung, Huang also termed Hyundai’s planned AI data center in Saemangeum as an “AI Valley” akin to California’s Silicon Valley, stating that he was “very happy to build Nvidia in Saemangeum.”