(RTTNews) - SK Group and NVIDIA (NVDA) have deepened their strategic partnership through a more than $500 billion project covering AI factory construction and cutting-edge memory solutions. The firms have signed letters of intent to build this wide-ranging alliance aimed at creating extensive AI infrastructure to address rising worldwide compute requirements.

Within this initiative, SK Telecom plans to develop a 2-gigawatt NVIDIA Vera Rubin DSX AI Factory in Korea. Set to begin operations in 2027, the site will follow the NVIDIA DSX full-stack AI factory design, combining accelerated computing, systems, software, and partner technologies for top energy efficiency and minimal token costs.

This effort extends years of cooperation between SK Group and NVIDIA, building on SK Telecom's prior AI Cloud announcement. Using NVIDIA Vera Rubin accelerated computing alongside SK hynix HBM4, the facility will boost sovereign, physical, agentic, and enterprise AI services to meet increasing needs in South Korea and the wider Asia-Pacific area.

At the same time, SK hynix and NVIDIA have formed a long-term AI memory agreement. The deal ensures reliable delivery of advanced AI memory to NVIDIA and supports SK hynix in strengthening its expansion base. The partners will jointly develop and refine next-generation memory options, such as HBM, to meet demands from large language model training through to agentic and physical AI applications.

The SK Telecom and NVIDIA work will increase customer reach to sophisticated cloud offerings, helping SK Telecom grow its large-scale AI setup and open capital-heavy resources to more users.

NVDA closed Friday's regular trading at $206.84 down $1.92 or 0.92%.

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