Samsung and SK Hynix Partner with OpenAI on Chip Supply and Data Centres
Samsung Electronics and SK Hynix have signed agreements to supply memory chips for OpenAI’s data centres. The move strengthens South Korea’s role in the global artificial intelligence race, as both chipmakers join forces with the ChatGPT creator to meet rising demand from the Stargate project.
OpenAI to Build Data Centres in South Korea
OpenAI also plans to work with the two South Korean companies to construct two data centres. These facilities, described as a “Korean-style Stargate,” will build on Seoul’s ambitions to become a leading AI hub in Asia. South Korea already ranks second only to the US in the number of paid ChatGPT subscribers, making it a key market for OpenAI.
The announcements followed a meeting in Seoul between OpenAI CEO Sam Altman, South Korean President Lee Jae Myung, and the chairmen of Samsung Electronics and SK Hynix.
Global AI Competition and the Stargate Project
US President Donald Trump unveiled the $500 billion Stargate project earlier this year, assigning OpenAI and partners like SoftBank and Oracle the task of ensuring US leadership in AI. A core element of the project is expanding chip supply, with Nvidia recently pledging up to $100 billion in investment and advanced chips for OpenAI.
South Korea’s presidential adviser Kim Yong-beom confirmed that OpenAI aims to purchase 900,000 semiconductor wafers in 2029. Joint ventures with Samsung and SK Hynix are expected to build two local data centres with an initial capacity of 20 megawatts. He added that South Korea is open to helping finance the project if required.
Kim stressed that the Stargate project cannot succeed without memory chips from the two South Korean leaders, positioning them at the forefront of the world’s largest AI infrastructure initiative.
Expanding AI Infrastructure and Partnerships
Altman praised Korea’s industrial strength, saying it was critical for the global AI ecosystem. He highlighted memory chips as essential to meeting rising AI demands worldwide.
The presidential office revealed that Google has also been in talks with South Korean companies regarding AI partnerships. Meanwhile, SK Group announced in June a 7 trillion won investment, including $4 billion from Amazon Web Services, to build a data centre in South Korea.
Samsung and SK Hynix currently control about 70% of the global DRAM market and nearly 80% of the HBM market. HBM, first produced in 2013, stacks memory chips vertically, saving space and energy while enabling faster processing of vast amounts of AI data.
Analysts estimate that 900,000 wafers of advanced DRAM chips could be worth more than 100 trillion won ($70 billion), although the value will depend on market conditions.
OpenAI has already opened its first office in Seoul this year as ChatGPT adoption soars in South Korea. However, some investors remain concerned about the risk of an AI bubble due to rapid expansion.
Wider Role for Samsung Companies in AI Development
Beyond chip supply, Samsung Electronics’ affiliate Samsung SDS will partner with OpenAI to develop and operate AI data centres under the Stargate project. The company will also expand its enterprise AI services.
In addition, Samsung Heavy Industries and Samsung C&T will collaborate with OpenAI on floating offshore data centres. These facilities aim to reduce cooling costs and cut carbon emissions, supporting more sustainable AI infrastructure.
with inputs from Reuters