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Shaking up the AI industry! Nvidia teams up with SK Group to invest $500 billion to build an AI factory and a giant 2GW data center 🚀
Nvidia and SK Group announced a strategic partnership worth over $500 billion to build a 2-gigawatt AI Data Center in South Korea, using the latest Vera Rubin technology and the newest HBM4 memory from SK hynix.
📌 Summary of important points:
- Nvidia and SK Group announced a historic strategic partnership worth over 500 billion US dollars
- The agreement covers the long-term supply of HBM4 memory from SK hynix and the plan to build a 2-gigawatt AI Data Center by SK Telecom
- The new data center will use the DSX AI factory platform and Nvidia's Vera Rubin system, which will launch its first phase in 2027 to drive AI in the Asia-Pacific region.
Nvidia and SK Group, the South Korean conglomerates, have signed letters of intent to establish a new strategic relationship, with a total value of up to $500 billion. This major collaboration aims to fully enhance AI infrastructure across multiple dimensions, ranging from the development of next-generation memory to the creation of massive AI factories.
The core of this collaboration is SK Telecom's plan to build a 2-gigawatt AI Data Center in South Korea, using Nvidia's DSX AI factory platform, which is a blueprint for constructing a comprehensive AI data center. This data center will be equipped with Vera Rubin accelerator computers that come with the latest HBM4 memory from SK hynix, a subsidiary of SK Group. The project is expected to be operational by 2027.
⚙️ Technology and Infrastructure
This 2 GW data center is expected to require several thousand NVL72 VR200 racks, which contain hundreds of thousands of Vera CPUs and Rubin AI GPUs to support complex AI processing. Nvidia's DSX platform not only includes hardware but also networks, software, and partner technologies to enable token creation at the lowest cost and highest energy efficiency.
📈 The meaning of a value of 500 billion dollars
This enormous figure does not refer to a one-time cash investment, but rather to the total value of business activities expected to occur between the two companies over the coming years, which includes SK Telecom's orders for GPUs and networking equipment from Nvidia, a long-term memory supply agreement from SK hynix to Nvidia, and revenues of partners in Nvidia’s ecosystem related to the establishment of AI factories.
The goal of this project is to support the use of AI in various forms, including Sovereign AI, Enterprise AI, Physical AI, and Agentic AI across South Korea and the Asia-Pacific region. It is regarded as a significant move that will completely transform the landscape of the AI industry in this region.
💬 How do you think this level of collaboration will affect the direction of the AI industry in Asia?