South Korea's SK Group and chipmaker Nvidia have announced a strategic partnership valued at more than $500 billion, aimed at building out artificial intelligence infrastructure and next-generation memory technology.
According to Businessworld, the initiative centers on "AI factories" and memory partnerships, and includes plans for a 2-gigawatt AI data centre slated for 2027. A 2-gigawatt facility is enormous — comparable to the output of a large power plant — underscoring just how much electricity and computing the two companies expect advanced AI to demand.
As reported by Pulse 2.0, the companies are framing the deal as an expansion of an existing relationship, one that stretches "across AI factories and next-generation memory." SK Group is a major force in memory chips, the components that store the data AI systems churn through, while Nvidia dominates the market for the processors that train and run AI models. The two sides pairing up ties together the memory and the compute that modern AI systems both depend on.
The figure attached to the announcement — $500 billion or more, per both Businessworld and Pulse 2.0 — places it among the largest publicly stated commitments in the current AI buildout. The available sources describe the scope and headline components but do not detail how the spending breaks down or over what timeframe it unfolds beyond the 2027 data centre target.
Why it matters: The deal signals that the race to build AI infrastructure is now measured in hundreds of billions of dollars and drawing in the world's largest memory and chip makers, shaping who controls the hardware behind the next wave of artificial intelligence.