Samsung, SK Group seal $1.23 trillion in deals as South Korea hosts AI powers
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South Korean President Lee Jae Myung unveiling the San Francisco AI Declaration in California on July 24.
PHOTO: EPA
- South Korean President Lee Jae Myung hosted an AI summit in San Francisco to promote global cooperation and establish South Korea as a leader in the AI industry.
- South Korea plans a US$500 billion initiative with Nvidia and SK Group to build AI data centres and advanced memory technologies, including a 2-gigawatt data centre by 2027.
- AI firms like Anthropic, OpenAI, and Broadcom face growing chip demand, highlighting shortages and driving partnerships with South Korean semiconductor companies to meet future computing needs.
AI generated
SAN FRANCISCO/SEOUL – South Korea announced US$950 billion (S$1.23 trillion) in new AI initiatives involving Samsung Electronics, SK Group and US tech companies as global AI leaders rush to fill a shortage of faster chips to power and develop more advanced systems.
SK Group has signed deals worth US$750 billion, including SK Hynix’s partnership with Nvidia valued at more than US$500 billion, South Korea’s presidential Blue House said after a summit on AI hosted by President Lee Jae Myung in San Francisco.
Samsung Electronics said it had signed a memorandum of understanding with Broadcom covering up to US$200 billion across memory chips, foundry services and advanced packaging.
The deals are the latest moves by US AI companies hoping to lock in supply as demand for chips and computing infrastructure outpaces supply, driving tech companies into closer partnerships with South Korea’s semiconductor and memory leaders.
Speaking at the summit, Lee said South Korea would lead the way to a new era of artificial intelligence in partnership with global technology companies, making available its “dynamic AI ecosystem” to expand the global market for industrial and personal AI use.
He unveiled a “San Francisco AI Declaration” that outlined South Korea’s AI ambitions for technological cooperation with the United States.
“I’d like to present a vision for the future of AI and propose global cooperation to make it happen,” Lee said.
Lee separately met Nvidia chief executive Jensen Huang, OpenAI CEO Sam Altman, Anthropic CEO Dario Amodei and Broadcom CEO Hock Tan before joining the summit.
Samsung Electronics executive chairman Jay Y. Lee, SK Group chairman Chey Tae-won, Hyundai Motor Group executive chair Euisun Chung and Naver founder Lee Hae-jin also attended.
According to South Korean officials, about 150 executives, investors, researchers and start-up founders attended the summit.
On the sidelines of the conference, Nvidia and SK Group unveiled a US$500 billion-plus initiative spanning large-scale AI data centres and next-generation memory.
The initiative includes a long-term partnership with SK Hynix to secure next-generation memory supply for Nvidia and jointly develop high-bandwidth memory for AI training, AI agents and physical AI applications.
As part of the agreement, SK Telecom plans to build a two-gigawatt data centre powered by Vera Rubin chips and SK Hynix HBM4 high-bandwidth memory chips. The data centre is due online in 2027.
Samsung Electronics said it will work with Broadcom on the development of its next-generation AI accelerator based on Samsung’s high-bandwidth memory technology and provide it with sub-2-nanometer foundry process and advanced packaging solutions.
‘I want more’
SK chairman Chey said AI customers were seeking far more memory than previously anticipated, pointing to recent discussions with Nvidia, Anthropic, OpenAI and Broadcom.
Chey said Nvidia’s projected memory requirement over the next five years could soon prove to be higher.
“I wouldn’t be surprised if, the next time I see (Huang), he’ll tell me those figures were too low and say, ‘I want more’,” Chey said.
He said Broadcom CEO Tan also told him the company’s memory demand was likely to surpass available supply, and that Anthropic was regularly checking on future chip availability as it moves beyond developing AI models to building computing capacity.
Chey said OpenAI would require enormous computing power and had urged SK to supply chips directly to the ChatGPT maker.
The SK Group chairman also said Anthropic was making its own “computing power”, without elaborating, potentially referring to a plan reported by Reuters that the AI laboratory is exploring the possibility of designing its own chips.
An Anthropic spokesperson said the start-up was always exploring options and drawing on a range of chips for a diversified approach to computing.
Anthropic CEO Amodei made no comment on the reported plan, saying the company had signed supply deals with Samsung Electronics and SK Hynix, without providing further details.
In May, Anthropic raised funding at a post-money valuation of US$965 billion, naming Samsung Electronics, SK Hynix and Micron as partners whose technologies play a critical role in the supply of memory, storage and logic chips.
Lee is due to attend a Silicon Valley meeting on July 25 between South Korea’s National Pension Service, the world’s third-largest pension fund, and US-based venture-capital firms to encourage investment in South Korean start-ups.
The events underscore Lee’s efforts to attract global capital and technology partners as he pursues one of the world’s most ambitious state-backed AI drives.
In June, he unveiled three massive state-driven projects anchored by Samsung Electronics and SK Hynix to build semiconductor production clusters, physical AI ecosystems and AI data centres as part of a sweeping industrial strategy with more than US$576 billion in investment. REUTERS
