Illustration for: Nvidia and SK Hynix Expand Their $500B AI Memory Bet

Nvidia and SK Hynix Expand Their $500B AI Memory Bet

Nvidia and SK Group expanded a partnership both companies describe as worth more than $500 billion across AI factories and next-generation memory, centered on a long-term deal to co-develop HBM.

By the Numbers

$500B+
Partnership value
Jul 25, 2026
Announced
HBM, next-gen memory
Focus
2GW Vera Rubin DSX
SK Telecom buildout
TC
By the Markets Desk
Edited by Trace Cohen · Early-stage VC & angel · Founder, New York Venture Partners
1 min read
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THE RUNDOWN

1

The $500 billion spans multi-year memory R&D, factory construction and compute buildout with no published year-by-year allocation -- it describes an ambition across many projects, not a committed check either company has to write.

2

HBM has been a tighter bottleneck in the AI chip supply chain than GPU count itself, so the long-term co-development agreement with the world's largest memory maker is the piece of this partnership that actually removes a constraint.

3

SK Telecom's planned 2-gigawatt Vera Rubin DSX AI Factory means the memory supplier is also a compute buyer -- Nvidia is locking in a source and a customer inside the same partnership rather than just securing parts.

4

The falsifiable test is whether rival memory makers announce comparable tie-ups with Nvidia's competitors: if none appear, this stays a one-off; if they do, HBM supply turns into an exclusivity contest rather than an open market.

TC

The VC Read · Trace's Take

Trace Cohen

The $500B headline spans years of memory R&D, factory construction and compute buildout with no public year-by-year split -- the number that actually matters is the HBM co-development commitment, since memory supply has been a tighter AI-chip bottleneck than GPU count itself. Watch whether other memory makers announce comparable exclusive-ish tie-ups with Nvidia's competitors; that's the tell this becomes an industry pattern, not a one-off.

Analysis

Nvidia and SK Group expanded their strategic partnership in Seoul on July 25, a comprehensive tie-up both companies have described as worth more than $500 billion across AI factories and next-generation memory development, according to SK hynix's own newsroom and Nvidia's newsroom. The centerpiece is a long-term agreement for Nvidia and SK hynix to co-develop and optimize next-generation AI memory, including high-bandwidth memory (HBM), for workloads ranging from large-language-model training to agentic and physical AI.

Beyond memory, SK Telecom is set to build a 2-gigawatt Nvidia Vera Rubin DSX AI Factory to serve global compute demand -- a scale that puts a single Korean buildout in the same range as some of the largest US hyperscale campuses. The partnership builds on years of existing co-engineering between the two companies, which already supplies memory for some of the most advanced AI computing platforms running today.

The $500 billion figure spans a multi-year, multi-project partnership rather than a single committed check, and neither company has published a year-by-year breakdown of how it's allocated across memory R&D, factory construction and compute buildout. For a market already pricing AI infrastructure spending as a near-certainty, the practical significance is less the topline number and more the memory-supply commitment specifically -- HBM has been one of the tighter bottlenecks in the AI chip supply chain, and a locked-in, multi-year co-development deal with the world's largest memory maker is a real hedge against that constraint.

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Key Sources

3 sources

Reported by Nvidia Newsroom · First reported by SK hynix Newsroom · Analysis by Value Add Pulse.

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