NVIDIA Secures Six Deals with AI Tech Giants in South Korea

NVIDIA is turning to South Korea for memory chips to keep pace with skyrocketing global demand that shows no sign of slowing down anytime soon. 

In a multi-year technology partnership with SK hynix, the American tech company is committing to developing advanced memory for global AI data centres. 

This comes along with a series of technology partnerships with South Korean industrial giants, including SK Telcom, Naver, Doosan, LG Group and Hyundai Motor.

The agreements follow a four-day trip to Seoul, South Korea by Jensen Huang, CEO of NVIDIA. 

After engaging in local activities, Jensen secured critical supply chain agreements spanning advanced memory chips, gigawatt-scale data centres and autonomous mobility.

As of writing, NVIDIA and its partners have not disclosed the financial value of the deals.

SK hynix anchors NVIDIA supply 

The multi-year collaboration between SK hynix and NVIDIA allows supply to keep pace with the expansion of NVIDIA into robotics, personal computers and supercomputers. 

This comes at a time when memory chip makers are straining to keep up with global demand.

The CEO of NVIDIA also spoke to Chey Tae-won, who is the Chairman at SK Group, the parent company of SK hynix. Jensen says: “SK hynix has been NVIDIA's largest memory partner. SK hynix will continue to be NVIDIA's largest memory partner.”

The deal with SK hynix, which is a rival to Samsung Electronics and US-based Micron Technology, is for more than two years with the option to keep extending.

“We already procure and we buy from SK hynix already billions and billions of dollars each year, and it is going to grow substantially,” adds Jensen.

Young Ho Ryu, Senior Industry Analyst at NH Investment & Securities, says the partnership reinforces the view that memory chips are evolving from a commodity product into a more customer-specific business.

From AI data centres to humanoid robotics

The deals with SK Telecom, Naver and Doosan will leverage NVIDIA’s technology to build data centres.

SK Telecom says it will build a gigawatt-scale AI cloud in South Korea with NVIDIA’s help. The first AI data centre is scheduled to come online in 2027.

NVIDIA says internet giant NAVER and conglomerate Doosan Group will also use its technology to help build AI data centres.

Doosan Group develops robots and makes materials used in the powerful Blackwell chips of NVIDIA. 

The company says it expects its energy solution to be used in the data centre platforms of NVIDIA and plans to use the physical AI technology of the US firm as well.

After a meeting with Koo Kwang-mo, Chairman and CEO at LG Group, Jensen also notes that NVIDIA is partnering with LG Group on electronics, mechanical systems and AI for humanoid robots.

He comments: “We are working with them in motor technology as well as mechanical systems so that we can bring together humanoid robotics and the future of robotics.”

Jensen says the pair are also working on the architecture of future data centres. This includes cooling, power delivery and the entire design and building of the facilities.

Following a meeting with Euisun Chung, Executive Chair at Hyundai Motor Group, NVIDIA revealed deepening its partnership with Hyundai across a range of AI initiatives. These include autonomous mobility, robotics and AI-powered manufacturing.

Jensen highlighted opportunities to accelerate the development of industrial robotics, saying NVIDIA and Hyundai will work together to bring AI to all forms of mobility.

He refers to the planned AI data centre of Hyundai Motor Group in Saemangeum, South Korea as an AI Valley akin to Silicon Valley in California.

“I am very happy to build NVIDIA in Saemangeum,” Jensen says.

Global market panic hits Korea 

Home to major producers of chips, electronics, cars and ships, South Korea reigns as an Asian manufacturing powerhouse.

SK hynix and Samsung Electronics are the two largest makers of memory chips in the world, which are key components in data centres.

The benchmark Kospi index of the country doubled in six months as heavyweights SK hynix and Samsung Electronics benefitted from the AI wave.

However, the index closed 8.3% lower on Monday after robust US jobs data fanned bets on a Federal Reserve rate hike this year and sparked a rout in global tech stocks.

Shares in Samsung Electronics and SK hynix closed down 10.2% and 7.7% respectively.

When asked about the global chip stock rout, Jensen waved off concerns.

He says: “Everybody should be very excited; they can now buy stock at a cheaper price, and it is absolutely true that the future of AI is very bright.”