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 major players such as Samsung Electronics, SK Group, and various U.S. technology firms. This initiative aims to address the increasing demand for advanced chips necessary for the development of sophisticated AI systems.

SK Group has secured deals totaling $750 billion, which includes a significant partnership between SK Hynix and Nvidia valued at over $500 billion. This announcement was made following an AI summit led by President Lee Jae Myung in San Francisco.

Samsung Electronics has also entered into a memorandum of understanding with Broadcom, covering up to $200 billion for memory chips, foundry services, and advanced packaging solutions. These agreements represent a strategic move by U.S. AI companies to secure supply chains as the demand for chips and computing infrastructure continues to exceed available resources.

Strategic Partnerships and Initiatives

At the summit, President Lee emphasized South Korea’s commitment to leading a new era of AI in collaboration with global technology firms. He introduced the “San Francisco AI Declaration,” which outlines South Korea’s ambitions for technological cooperation with the United States.

In his address, Lee stated, “I’d like to present a vision for the future of AI and propose global cooperation to make it happen.” He held separate meetings with prominent figures in the tech industry, including Nvidia CEO Jensen Huang, OpenAI CEO Sam Altman, Anthropic CEO Dario Amodei, and Broadcom CEO Hock Tan, prior to the summit.

Notable attendees included 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.

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 secure next-generation memory supplies for Nvidia and to jointly develop 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 the facility expected to be operational by 2027.

Samsung Electronics will collaborate with Broadcom on the development of a next-generation AI accelerator, utilizing Samsung’s HBM technology and providing advanced packaging solutions along with a sub-2-nanometer foundry process.

Growing Demand for Memory

SK Group Chairman Chey highlighted that AI customers are seeking significantly more memory than previously anticipated, referencing discussions with Nvidia, Anthropic, OpenAI, and Broadcom. He noted that Nvidia’s projected memory requirements over the next five years could be underestimated.

Chey remarked, “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.'” He also mentioned that Broadcom’s CEO Hock Tan indicated the company’s memory demand is likely to exceed available supply, while Anthropic is 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 indicated that Anthropic is exploring its own “computing power,” potentially hinting at plans to design its own chips.

An Anthropic spokesperson confirmed that the startup is continuously exploring options and utilizing a diverse range of chips for its computing needs. Anthropic CEO Amodei did not comment on the reported plans but acknowledged that the company has signed supply agreements with Samsung Electronics and SK Hynix.

In May, Anthropic raised funding at a post-money valuation of $965 billion, identifying Samsung Electronics, SK Hynix, and Micron as critical partners in the supply of memory, storage, and logic chips.

Investment and Future Prospects

President Lee is scheduled to attend a meeting in Silicon Valley on Saturday, where South Korea’s National Pension Service, the world’s third-largest pension fund, will engage with U.S.-based venture-capital firms to encourage investment in South Korean startups. This initiative underscores Lee’s efforts to attract global capital and technology partners as he spearheads one of the most ambitious state-backed AI initiatives worldwide.

Last month, Lee unveiled three significant state-driven projects, backed 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.

As reported by www.emirates247.com.

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Published on 2026-07-25 11:31:00 • By FAME Delivered News Desk