Jul 27, 2026 | Posted by Abdul-Rahman Oladimeji
Nvidia has announced a more than $500 billion AI partnership with South Korea's SK Group, including plans for a 2GW AI factory and joint development of next-generation AI memory technologies, including high-bandwidth memory (HBM). The companies have signed letters of intent to formalise the agreement. The 2GW project refers to SK Telecom's previously announced plan to develop a gigawatt-scale AI cloud platform in South Korea using Nvidia's DSX platform. The first AI factory, powered by Nvidia's Vera Rubin systems and SK Hynix HBM4 memory, is expected to come online in 2027.
Nvidia’s DSX reference architecture combines software, hardware, and operations to support AI training, inference, and agentic workloads. The partnership will also see Nvidia and SK Group develop next-generation AI memory solutions, including HBM, while securing future memory supply.
“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.”
Jensen Huang, founder and CEO of Nvidia, added: “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. 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.”
