Nvidia Expands AI Partnership with SK Group Valued Over $500 Billion

In an era of rapid advancements in artificial intelligence technology, chip giant Nvidia (NASDAQ: NVDA) and South Korean conglomerate SK Group have forged a monumental strategic partnership valued at over $500 billion. This comprehensive collaboration, spanning from the construction of AI factories to the supply of next-generation memory, aims to bolster global AI infrastructure. The agreement is set to play a crucial role in securing Nvidia's supply of high-bandwidth memory (HBM), one of its most critical components.

At the core of this partnership is a long-term AI memory supply and co-development agreement between SK Hynix, an SK Group affiliate, and Nvidia. Through this deal, Nvidia will ensure a stable supply of HBM and other next-generation AI memory solutions, while SK Hynix will expand its growth potential. Reports indicate that SK Hynix is expected to supply approximately 70% of Nvidia's HBM4 orders for its upcoming Vera Rubin AI platform, a figure significantly exceeding market expectations. This underscores SK Hynix's dominant position in the HBM market.

Another significant aspect of the collaboration involves SK Telecom's plans to build a massive 2-gigawatt AI factory in South Korea. This facility, which will utilize Nvidia's Vera Rubin chips and SK Hynix's HBM4 memory, is expected to see its first phase come online in 2027. Designed to meet global compute demand, this AI factory will significantly contribute to the development of AI infrastructure across the Asia-Pacific region. Jensen Huang, founder and CEO of Nvidia, highlighted South Korea's potential to become a global AI powerhouse, stating that such collaborations will accelerate the country's growth.

This strategic partnership is vital for Nvidia in securing its supply chain amidst intense competition in the AI chip market. High-bandwidth memory plays a critical role in the performance of AI processors, and shortages in these components can constrain the expansion of AI data centers. With this move, Nvidia aims to guarantee the necessary HBM supply for both its current and future generations of AI platforms. The company's data center revenue has seen substantial growth in recent years, exceeding $100 billion in 2025, with projections of over $130 billion for 2026.

Globally, the AI market is projected to reach $1.3 trillion by 2032, making such large-scale infrastructure investments crucial for the sector's future. Analysts note that HBM supply remains a key bottleneck in the expansion of AI infrastructure. Nvidia's long-term agreement with SK Group not only addresses memory supply but also deepens integration within the AI hardware and software ecosystem. This collaboration could serve as a significant catalyst for the wider adoption of AI technologies and the emergence of new applications in the coming period.

Markets are closely monitoring such strategic partnerships. Nvidia's shares (NVDA) continue to be a focal point for investors due to the company's strong position in AI and its innovative initiatives. This agreement with SK Group supports Nvidia's long-term growth potential and could provide a competitive edge in the global AI race. With the operationalization of these AI factories in the coming years, South Korea's goal of becoming a global hub for AI innovation will also be reinforced.