Nvidia (NVDA) has secured deals with leading South Korean firms such as SK Hynix that make memory chips that help power artificial intelligence (A.I.) workloads.
Nvidia has not disclosed the value of the deals. However, analysts say it’s important for the U.S. technology giant to secure a reliable supply of memory chips, which are in shortage globally.
SK Hynix said the agreement, which comes as memory chip makers struggle to keep up with demand, will enable supply to keep pace with Nvidia’s A.I. ambitions that extend to robots and computers as well as data centres.
Nvidia said its deal with SK Hynix is for more than two years with the option to keep extending it into the future.
In another deal, SK Telecom (SKM) will build a gigawatt-scale A.I. cloud in South Korea using Nvidia’s processors, with the first A.I. data centre to come online in 2027.
Nvidia also said that internet giant Naver and conglomerate Doosan would use its technology to help build A.I. data centres in Asia.
Plus, Nvidia is partnering with LG Group (LPL) on electronics and A.I. for humanoid robots. The deals were announced as Nvidia CEO Jensen Huang visited South Korea for business.
South Korea is an Asian manufacturing powerhouse and the A.I. boom has provided a windfall for its economy and stock market.
The country’s benchmark Kospi stock market index has doubled in the past six months.
NVDA stock has gained 10% this year to trade at $210.05 U.S. per share.
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