Nvidia locks down memory supply from SK Hynix as part of $500 billion AI deal

Jensen Huang, chief executive officer of Nvidia Corp., speaks to members of the media following the company's "Japan AI Ecosystem" reception in Tokyo, Japan, on Thursday, July 16, 2026. Kiyoshi Ota | Bloomberg | Getty ImagesNvidia said it's secured AI memory supply from South Korea's SK Hynix, as the chipmaker tries to lock in a key component for its advanced processors and systems.The agreement, announced late Friday in San Francisco, could be worth $500 billion over a number of years, and includes the construction of large-scale data centers expected to come online in 2027, Nvidia said. SK Hynix affiliate SK Telecom will build a cloud business using Nvidia's Vera Rubin systems. Nvidia said it's targeting enough capacity to require 2 gigawatts of power, which indicates a massive buildout with hundreds of thousands of graphics processing units. Nvidia is aggressively securing supply of high-bandwidth memory, which is essential for its GPUs and systems, as the AI boom has created a global memory shortage. SK Hynix is the leader in HBM production, according to analysts. "The expansion will include a co-develop opportunity for us on the next-generation SK Hynix AI memory, and this wil...