Nvidia commits $500 billion to SK Group as the global AI buildout accelerates
Jensen Huang, the CEO of Nvidia, has revealed a partnership deal worth around $500 billion with SK Group of South Korea which may become the largest commitment in the field of AI infrastructure so far. Huang announced the amount of deal during the meeting with President of South Korea Lee Jae Myung in San Francisco, although the companies have not yet publicly disclosed details about the deal.
The comments reported first by the Yonhap news agency have underlined the speed with which the AI race is developing. Starting off as the competition to make faster chips, the race has moved on to establishing every aspect of AI supply chain that requires advanced memory, data centers and engineers to power them.
According to ChosunBiz, Huang said during the meeting, โSK Group and Nvidia will announce a business partnership between the two companies todayโฆ the size amounts to $500 billion.โ
Why a memory partner sits at the center of the deal
The South Korean conglomerate SK Group owns SK Hynix, which is one of two companies that monopolize the region of high-bandwidth memory (HBM), which is stacked DRAM that allows AI accelerators to perform large data processing at a very high speed. That will put SK Group in a position closer to Nvidia and makes memory supply a key ingredient in their collaboration rather than only being about chip design.
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