SK Group and Nvidia sign over $500 billion AI infrastructure deal

By: Anwesha Pattanaik | 3 min read

South Korea-based SK Group and Nvidia have announced a partnership valued at over $500 billion, aimed at building AI infrastructure to meet rising global compute demands.

The agreement, formalized through letters of intent, covers the construction of AI factories as well as the supply and co-development of next-generation AI memory.

Key Details of the Partnership

• SK Telecom, SK Group's telecommunications division, plans to build a 2GW AI cloud in South Korea.
• The project will deploy Nvidia's DSX platform and Vera Rubin accelerated computing technology, paired with SK hynix HBM4 memory.
• The first facility is scheduled to commence operations in 2027.
• The AI factories are designed using Nvidia's DSX full-stack architecture, which combines accelerated computing, integrated systems, software, and partner technologies.

The goal is to maximize energy efficiency and reduce processing costs as demand for AI continues to grow, particularly across Asia-Pacific markets such as South Korea.

Scope of Collaboration

The partnership intends to accelerate the development of large-scale AI infrastructure, including solutions for:

• Enterprise AI
• Agentic AI
• Physical AI
• Sovereign AI applications

SK hynix, part of SK Group, has entered into a long-term partnership with Nvidia to secure the supply and joint optimization of next-generation AI memory, including high-bandwidth memory (HBM). The companies aim to address evolving infrastructure requirements, such as those related to large language model training and various AI use cases.

Executive Statements

Chey Tae-won, Chairman of SK Group, said:

"In the AI era, competitiveness depends not just on how effectively AI is utilised, but on how much intelligence we can produce. 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, said:

"South Korea has all the ingredients to become a global AI powerhouse — world-class networks and data centres, 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."

Related Developments

In a separate development, Naver, Nvidia, and Brookfield have announced a proposed expansion of South Korea's national AI factory infrastructure:

• The plan involves increasing the Nvidia DSX AI factory deployment to 200MW, more than triple the previously announced 55MW project.
• Naver intends to extend its total deployment of Nvidia AI infrastructure in the country to 1GW.
• Nvidia is expected to invest $1 billion into Naver.
• Brookfield has signed a nonbinding term sheet for financing of up to $9 billion.
• Naver will cover the remaining funding needed to finance the project.

Last month, Nvidia entered into multi-year agreements with multiple South Korean technology firms, including SK hynix, Doosan Group, Naver, SK Telecom, and LG Group. These partnerships aim to develop and secure critical memory technologies, expand AI infrastructure, and support the rollout of AI factories to meet rising global demand for AI computing power.

"SK Group, Nvidia sign $500bn deal for AI infrastructure" was originally created and published by Verdict, a GlobalData owned brand.