SK Group, Nvidia expand partnership across AI factories, memory

SK Group and Nvidia have announced plans for a USD 500 billion plus comprehensive partnership to establish AI infrastructure serving the surging demand for global compute. The two sides signed Letters of Intent to formalize the agreement, which spans from AI factory construction to AI memory supply, according to a media release.

The announcement builds on the decades-long technology partnership between SK Group and Nvidia, including the recently announced plans for SK Telecom to build a 2 gigawatt-scale AI Cloud in Korea. This cloud will use the Nvidia DSX platform and deploy Nvidia Vera Rubin accelerated computing powered by SK hynix HBM4, with the first AI factory planned to come online in 2027.

It will be built on the Nvidia DSX full-stack AI factory architecture, which integrates Nvidia accelerated computing, systems, software and partner technologies to deliver the lowest token cost at maximum energy efficiency. The two companies aim to accelerate large-scale AI infrastructure development, including sovereign, physical, agentic and enterprise AI services and jointly address the increasing AI demand across the Asia-Pacific region, including South Korea, the media release said.

SK hynix is also entering into a long-term AI memory partnership with Nvidia. As a follow-up measure to solidify their previous long-term technical partnership, this agreement allows Nvidia to secure a stable supply of next-generation AI memory, while enabling SK hynix to expand the foundation for growth.

The two companies will co-develop and optimize next-generation AI memory solutions, including HBM, to meet evolving infrastructure demands ranging from large language model training to agentic AI and physical AI.

“South Korea has all the ingredients to become a global AI powerhouse — world-class networks and data centers, leadership in chip technology and vast industrial scale,” said Jensen Huang, founder and CEO of Nvidia. “Together with SK Telecom and SK hynix, we are building a new generation of AI factories that will power Korea’s next wave of growth.”

“In the AI era, competitiveness depends not just on how effectively AI is utilized, but on how much intelligence we can produce,” said SK Group Chairman Chey Tae-won. “By leveraging SK hynix’s AI memory and SK Telecom’s AI infrastructure capabilities, SK will collaborate with Nvidia to build a world-class AI factory, helping Korea transcend its role as a leading adopter of AI and become a global hub that drives AI innovation.”