South Korea Unveils $950B AI Initiative as Samsung and SK Group Forge Major Tech Partnerships
SAN FRANCISCO/SEOUL: South Korea has announced a groundbreaking $950 billion initiative focused on artificial intelligence (AI), involving key players such as Samsung Electronics, SK Group, and various U.S. technology firms. This move comes as global leaders in AI strive to address a critical shortage of advanced chips necessary for the development of sophisticated AI systems.
Major Deals and Collaborations
The SK Group has secured agreements totaling $750 billion, which includes a significant partnership between SK Hynix and Nvidia valued at over $500 billion. This announcement was made by South Korea’s presidential Blue House following an AI summit led by President Lee Jae Myung in San Francisco.
Additionally, Samsung Electronics has entered into a memorandum of understanding with Broadcom, which encompasses up to $200 billion in investments across memory chips, foundry services, and advanced packaging technologies. These collaborations represent a strategic effort by U.S. AI companies to secure a reliable supply of essential components as demand for chips and computing infrastructure continues to outstrip availability.
Vision for AI Leadership
During the summit, President Lee articulated South Korea’s ambition to spearhead a new era of AI in collaboration with global technology companies. He emphasized the importance of South Korea’s “dynamic AI ecosystem” in expanding the global market for both industrial and personal AI applications.
Lee introduced the “San Francisco AI Declaration,” outlining South Korea’s aspirations for technological cooperation with the United States. He expressed a desire to present a forward-looking vision for AI and called for global collaboration to realize these goals.
Notable attendees at the summit included Nvidia CEO Jensen Huang, OpenAI CEO Sam Altman, Anthropic CEO Dario Amodei, and Broadcom CEO Hock Tan. 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 were also present.
New AI Initiatives and Infrastructure
Nvidia and SK Group have unveiled a new AI initiative valued at $500 billion, focusing on large-scale AI data centers and next-generation memory. This initiative includes a long-term partnership with SK Hynix to ensure a steady supply of next-generation memory for Nvidia, as well as joint development of high-bandwidth memory for AI training and applications.
As part of this agreement, SK Telecom plans to construct a 2-gigawatt data center powered by Vera Rubin chips and SK Hynix’s HBM4 high-bandwidth memory chips, with operations expected to commence in 2027. Samsung Electronics will collaborate with Broadcom on the development of next-generation AI accelerators based on Samsung’s HBM technology, providing sub-2-nanometer foundry processes and advanced packaging solutions.
Rising Demand for Memory
SK Chairman Chey highlighted that AI customers are demanding significantly more memory than previously anticipated, citing discussions with Nvidia, Anthropic, OpenAI, and Broadcom. He noted that Nvidia’s projected memory requirements over the next five years could soon exceed current estimates.
Chey remarked that he would not be surprised if, during future meetings with Huang, he would be informed that the figures were underestimated. He also indicated that Broadcom’s CEO had mentioned that the company’s memory demand was likely to surpass available supply. Anthropic has been actively monitoring future chip availability as it transitions from developing AI models to building computing capacity.
OpenAI has expressed a need for substantial computing power and has urged SK to supply chips directly to the organization behind ChatGPT. Chey also mentioned that Anthropic is exploring its own “computing power,” potentially indicating plans to design proprietary chips.
An Anthropic spokesperson confirmed that the startup is continuously exploring various options and utilizing a range of chips for a diversified computing approach. CEO Dario Amodei did not comment on the reported plans but confirmed that the company has signed supply agreements with Samsung Electronics and SK Hynix.
In May, Anthropic secured funding at a post-money valuation of $965 billion, naming Samsung Electronics, SK Hynix, and Micron as critical partners in supplying memory, storage, and logic chips.
Investment and Future Prospects
President Lee is scheduled to attend a meeting in Silicon Valley on Saturday, involving South Korea’s National Pension Service—one of the world’s largest pension funds—and U.S.-based venture capital firms. This meeting aims to foster investment in South Korean startups, underscoring Lee’s commitment to attracting global capital and technology partnerships as he spearheads one of the most ambitious state-backed AI initiatives worldwide.
Last month, Lee unveiled three substantial state-driven projects, anchored by Samsung Electronics and SK Hynix, aimed at establishing semiconductor production clusters, physical AI ecosystems, and AI data centers. This comprehensive industrial strategy involves over $576 billion in investment.
Source: www.emirates247.com
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Published on 2026-07-25 11:31:00 • By the Editorial Desk
