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Nvidia locks down memory supply from SK Hynix as part of $500 billion AI deal

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Key Points

  • Nvidia said it’s secured AI memory supply from SK Hynix, potentially alleviating a concern as the memory market faces a global shortage.
  • The chipmaker is aggressively securing supply of high-bandwidth memory, an essential component for its graphics processing units and AI systems.
  • SK Hynix’ affiliate SK Telecom will build a cloud business using Nvidia’s Vera Rubin systems.

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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. Japan is planning to buy 27,500 next-generation Rubin chips from Nvidia Corp. to build a homegrown foundational AI model for robots. Photographer: Kiyoshi Ota/Bloomberg via Getty Images

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.

Kiyoshi Ota | Bloomberg | Getty Images

Nvidia said it’s secured AI memory supply from South Korea’s SK Hynix, as the chipmaker tries to lock in a key component for its advanced processors and systems.

The agreement, announced late Friday in San Francisco, could be worth $500 billion over a number of years, and includes the construction of large-scale data centers expected to come online in 2027, Nvidia said.

SK Hynix affiliate SK Telecom will build a cloud business using Nvidia’s Vera Rubin systems. Nvidia said it’s targeting enough capacity to require 2 gigawatts of power, which indicates a massive buildout with hundreds of thousands of graphics processing units.

Nvidia is aggressively securing supply of high-bandwidth memory, which is essential for its GPUs and systems, as the AI boom has created a global memory shortage. SK Hynix is the leader in HBM production, according to analysts.

“The expansion will include a co-develop opportunity for us on the next-generation SK Hynix AI memory, and this will help us secure a stable supply of HBM memory,” Raj Mirpuri, Nvidia enterprise vice president, said on a call with reporters.

The agreement is also a sign that massive AI infrastructure buildouts are moving beyond a handful of hyperscalers, with foreign governments and massive conglomerates starting to get involved.

The deal was announced at an AI summit in San Francisco with South Korean officials including President Lee Jae Myung.

Nvidia also said Friday that it would invest $1 billion into Naver, a Korean cloud company building data centers around its GPUs. Nvidia said the project would provide an opportunity for potential customers in South Korea and around the world to secure AI computing capacity before the 200 megawatts of capacity is completed.

SK Hynix, South Korea’s second most valuable company, listed on the Nasdaq earlier this month as part of an effort to finance infrastructure developments.

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