Nvidia has announced a $500 billion-plus deal with SK Group that will include the construction of a 2GW 'AI factory' alongside a commitment to co-developing next-generation AI memory, including high-bandwidth memory (HBM).

The companies have signed letters of intent to formalize the deal, Nvidia said in a statement. A letter of intent typically sets out initial terms for an agreement and is usually non-binding.

The 2GW refers to the announcement made by SK Telecom in June 2026, when it detailed plans to deploy a "gigawatt-scale" AI cloud platform in South Korea based on the Nvidia DSX platform. Powered by the chip giant’s Vera Rubin hardware and SK Hynix HBM4, the first AI factory is slated to come online in 2027.

The Nvidia DSX is a full-stack reference architecture including software, hardware, and operations. The AI cloud platform will provide compute for AI training, inference, and agentic workloads for companies and organizations in South Korea, later expanding to other regions.

Nvidia released the Vera Rubin DSX AI Factory reference design, a guide to building data centers that support its latest CPU-GPU racks and Spectrum-X Ethernet networking and storage, in March 2026.

The $500bn agreement will also see the partners “co-develop and optimize next-generation AI memory solutions,” including HBM, to meet “evolving AI infrastructure demands.” Under the terms of the agreement, Nvidia will also receive access to a “stable supply of next-generation AI memory.”

“In the AI era, competitiveness depends not just on how effectively AI is utilized, but on how much intelligence we can produce,” said SK Group chairman Chey Tae-won. “By leveraging SK Hynix’s AI memory and SK Telecom’s AI 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.”

Jensen Huang, founder and CEO of Nvidia, added: “South Korea has all the ingredients to become a global AI powerhouse - world-class networks and data centers, 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.”