Nvidia, SK Group unveil $500 billion AI data center and memory deal

Nvidia and South Korea's SK Group have announced a partnership worth more than $500 billion covering new artificial intelligence data centers and a long-term memory chip supply agreement. The deal pairs Nvidia's processors with production capacity from SK Hynix, one of the world's largest suppliers of the high-bandwidth memory used in AI systems.

The scale of the announcement underscores how central memory chip supply has become to the AI buildout, with data center operators competing for capacity years in advance. Analysts said the partnership gives SK Hynix a major, multi-year customer commitment at a time when memory prices have been volatile.

Details on how the data centers will be built and financed are still emerging, and investors are watching closely for further updates from both companies. The agreement is also likely to draw scrutiny from regulators in Seoul and Washington given its size and strategic importance to the global chip supply chain.