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SK Group and NVIDIA have revealed one of the biggest artificial intelligence partnerships announced so far, announcing a $500 billion-plus strategic partnership that is meant to boost AI infrastructure and future-proof next-generation AI memory technologies. The ambitious project will leverage SK Group’s experience in semiconductors and telecoms along with NVIDIA’s AI computing platforms to meet the fast-growing global need for AI computing.

The partnership, made official through letters of intent signed at the AI Summit, involves not only building huge AI factories but also securing future supplies and developing next-generation AI memory technologies.

SK Telecom Will Build 2-Gigawatt AI Factory

Under the terms of the strategic partnership, SK Telecom plans to build a 2-gigawatt AI Factory in South Korea employing NVIDIA’s DSX AI Factory platform based on the company’s upcoming Vera Rubin accelerated computing architecture.

The first AI factory will start operating in 2027 and will employ SK hynix’s HBM4 (High Bandwidth Memory) technology, combining cutting-edge AI processors and memory in an optimized infrastructure.

The factory will be built with the help of NVIDIA’s full-stack DSX architecture, which employs accelerated computing hardware, networking, software, and partner technologies into a unified AI platform.

According to NVIDIA, the architecture is designed to maximize energy efficiency while minimizing the cost of generating AI outputs.

Supporting Asia-Pacific’s Growing AI Demands

This new AI infrastructure will enable faster implementation of sovereign AI, enterprise AI, agentic AI, and physical AI services in South Korea and the wider Asia-Pacific region.

The demand for AI computing has increased exponentially owing to the use of large language models, AI agents, robotics, and simulation technologies. The alliance intends to build a massive AI infrastructure that can cater to businesses, government agencies, and research institutions, thereby consolidating South Korea’s standing as an AI hub in the region.

The alliance will also make it easier for customers to access cloud-based AI computing by providing SK Telecom room to invest in infrastructure while at the same time providing enterprises with advanced AI services.

Long-Term Partnership on AI Memory

Apart from signing the agreement for developing new infrastructure, SK hynix and NVIDIA also signed a long-term agreement in terms of next-gen AI memory technologies.

As part of the deal, NVIDIA will have a constant supply of advanced AI memory, while both companies will co-develop the next-gen memory technology.

The collaboration will concentrate largely on HBM, which is a vital technology that allows for fast data transfer and increased performance compared to traditional memory solutions for AI accelerators.

The firms stated that the collaboration would help develop AI applications from training large language models to operating next-generation agentic AI and physical AI systems that are employed in robotics and other autonomous technologies.

Leaders Outline Vision

According to the chairman of SK Group, Chey Tae-won, the collaboration could be an opportunity for South Korea to shift from adopting AI technologies to becoming a leading innovator in AI.

He explained that being competitive in the age of AI not only implies working efficiently with artificial intelligence, but it also means that the country should be capable of producing intelligence at a mass scale. With such collaboration between SK hynix and SK Telecom, world-class AI factories are expected to emerge in South Korea, putting it at the center of the global AI community.

NVIDIA’s founder and CEO Jensen Huang agreed with him, praising South Korea for its network capabilities, semiconductor production, and industrial scale.

Per Huang, the nation has everything required to transform itself into an AI superpower, and the partnership would be instrumental in creating a new crop of AI factories that can fuel future growth.

Expanding an Existing Partnership

The new partnership builds upon an existing decades-old partnership between NVIDIA and SK Group. One of the biggest suppliers of High Bandwidth Memory for NVIDIA AI accelerators has been SK hynix, while SK Telecom has been steadily increasing its investments in AI cloud infrastructure based on NVIDIA technology.

In the latest development, the partnership has been extended further by integrating semiconductor manufacturing, AI computing platforms, networking, and cloud services into one package.

Strengthening Global AI Infrastructure

The deal is part of a larger trend across the tech industry where technology firms are committing significant investments in purpose-built infrastructure to satisfy the growing demands of generative AI services.

AI production factories have now become necessary for developing more and more complex foundation models as well as AI-based enterprise solutions. They need massive computing capacity, sophisticated network capabilities, and efficient memory systems, thus the need for close collaboration among chip makers, cloud service providers, and semiconductor firms.

What Does This Deal Mean For Both Parties Involved?

For NVIDIA, the deal marks another step in expanding its AI ecosystem of products outside of North America. The same goes for SK Group since it is another milestone towards the firm’s plans to become the top player in the AI infrastructure, cloud computing, and semiconductor industries.

In a world transformed by artificial intelligence technology, this deal, valued at over $500 billion, is certainly one of the biggest investments so far made in this area.