SK Group, Nvidia ink $500bn AI infrastructure deal

SK Group and Nvidia formalized a partnership valued at over $500bn through letters of intent, targeting the construction of AI factories and the supply and co-development of next-generation AI memory to meet rising global compute demands.

The collaboration centers on SK Telecom, SK Group's telecommunications arm, which will build a 2GW AI cloud facility in South Korea. This facility will deploy Nvidia's DSX platform—a full-stack architecture combining accelerated computing, integrated systems, software, and partner technologies—along with Vera Rubin accelerated computing technology and SK hynix HBM4 memory. The first facility is scheduled to commence operations in 2027. According to SK Group chairman Chey Tae-won, the partnership reflects a broader strategic goal: "In the AI era, competitiveness depends not just on how effectively AI is utilised, but on how much intelligence we can produce." He added that by leveraging SK hynix's AI memory and SK Telecom's 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."

SK hynix, part of SK Group, will enter into a long-term partnership with Nvidia to secure supply and joint optimization of next-generation AI memory, including high-bandwidth memory (HBM), targeting the infrastructure requirements of large language model training and other AI use cases. Nvidia founder and CEO Jensen Huang stated: "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."

In a parallel development, Naver, Nvidia, and Brookfield announced a proposed expansion of South Korea's national AI factory infrastructure. The plan increases 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 $1bn into Naver, while Brookfield signed a nonbinding term sheet for financing up to $9bn; Naver will cover remaining funding. These announcements build on Nvidia's multi-year agreements announced last month with SK hynix, Doosan Group, Naver, SK Telecom, and LG Group, which aim to develop and secure critical memory technologies, expand AI infrastructure, and support AI factory rollout to meet rising global demand for AI computing power.

The SK Group–Nvidia partnership reflects a strategic shift in how South Korea approaches AI competitiveness. Rather than positioning itself merely as an adopter of AI technology, SK's chairman explicitly framed the country's role as a producer of "intelligence"—a signal that domestic AI infrastructure capacity is now viewed as critical to national economic advantage. The timing follows Nvidia's multi-year agreements announced last month with SK hynix, SK Telecom, Doosan Group, Naver, and LG Group, indicating a broader Nvidia commitment to South Korean manufacturing and deployment.

The deal is structured around two complementary moves: SK Telecom's cloud-infrastructure build (2GW by 2027) provides the computational backbone, while SK hynix's long-term partnership on AI memory supply and co-development addresses a bottleneck in large-scale training. Nvidia's DSX full-stack architecture—which bundles accelerated computing, integrated systems, and software—suggests the companies intend to optimize both energy efficiency and cost at scale, a necessity as demand for AI compute grows, especially across Asia-Pacific markets.

The parallel expansion involving Naver signals that South Korea is attracting multiple infrastructure investments concurrently. Naver's target of 1GW total deployment, combined with the 200MW Naver–Nvidia–Brookfield expansion (more than triple the prior 55MW plan), indicates accelerating capital commitments to the region. Brookfield's $9bn nonbinding term sheet underscores the scale of financing now flowing into AI infrastructure.

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