Samsung, SK form AI infrastructure partnership with OpenAI

Samsung and SK each signed comprehensive partnerships on artificial intelligence (AI) infrastructure with OpenAI during its CEO Sam Altman’s visit to Korea, Wednesday.

The partnerships, respective letters of intent with Samsung Group and SK Group, will enable Samsung Electronics and SK hynix to supply AI-specific memory chips worth hundreds of billions of dollars for the Stargate project, a $500 billion joint venture between OpenAI, Oracle and SoftBank for AI infrastructure in the U.S.

As part of the Stargate project, OpenAI expects it will need about 900,000 wafers’ worth of high-performance DRAM each month to power ChatGPT and its other AI solutions. During the visit, Altman noted that OpenAI hopes to source a significant portion of the demand from the Korean chip giants, helping the two secure stable and long-term client bases.

Samsung Group said Wednesday its Chairman Lee Jae-yong and Altman signed a letter of intent (LOI) for a partnership on AI infrastructure. The LOI involves Samsung Electronics, Samsung SDS, Samsung C&T and Samsung Heavy Industries.

Under the partnership, Samsung Electronics will supply low-power memory chips to OpenAI to ensure that the ChatGPT operator does not face difficulties in securing memory solutions. Samsung Electronics did not specify which type of memory chip it will supply, but it is widely expected to be high-bandwidth memory (HBM), a form of DRAM essential for powering AI accelerators such as graphics processing units (GPUs) used in data centers.

Samsung Electronics has a portfolio that spans memory semiconductors, system semiconductors and foundry services, covering the full range of products needed for AI training and inference. The company said it can provide OpenAI with differentiated solutions through its packaging technologies and the integration of memory and system semiconductors.

Samsung Electronics Executive Chairman Lee Jae-yong, left, shakes hands with OpenAI CEO Sam Altman during a signing ceremony for the two sides' letter of intent at Samsung Electronics office in Seocho District, Seoul, Wednesday. Courtesy of Samsung Electronics

SK Group also formed an LOI and a MOU during a meeting between SK Group Chairman Chey Tae-won and Altman.

Under the LOI, SK hynix, the world’s leading HBM supplier, will become “a partner supplying HBM for the Stargate project” and secure manufacturing capacity to meet OpenAI’s needs. SK Group said OpenAI’s request amounts to more than twice the current global production capacity of HBM, based on wafer volume.

“SK Group has joined the Stargate project as a key partner,” Chey said during the signing ceremony. “We will focus on our integrated AI infrastructure capabilities on this partnership, taking an active role in driving global AI infrastructure innovation and strengthening Korea’s national AI competitiveness.”

SK Group Chairman Chey Tae-won, right, poses with OpenAI CEO Sam Altman during a signing ceremony for the two sides' letter of intent at SK Group headquarters in Jongno District, Seoul, Wednesday. Courtesy of SK Group

Along with cooperating for GPUs, SK hynix and OpenAI will discuss further details on expanding their cooperation.

“The deals come at a critical juncture for the Korean AI ecosystem, as they guarantee semiconductor production worth hundreds of billions of dollars for years to come,” a senior industry official said.

After signing the partnerships, Altman, Lee and Chey met President Lee Jae Myung at the presidential office in Seoul to discuss ways to expand cooperation with Korean companies.

“The expansion of AI is impossible without semiconductors, and Samsung and SK both play a central role in the global market,” Lee said.

“The HBM supply partnership LOIs signed by the three companies represent a win-win partnership that will lead the global market. We also expect the collaboration to contribute to expanding exports and creating jobs in Korea, and hope that Samsung and SK will play a key role in the global spread of AI together with OpenAI.”

Samsung Chairman Lee said that the partnership will help Korea “stand at the center of the global AI paradigm and pioneer a new future.”

“Samsung will continue to contribute to Korea’s national AI vision, taking the lead not only in ensuring a stable semiconductor supply but also in fostering a solid AI ecosystem that includes small and venture businesses.”

Samsung Electronics and SK hynix are both preparing for mass production of HBM4 while undergoing Nvidia’s qualification process. Unlike previous generations, HBM4 is a customized chip designed to reflect customer demand. Given that the Stargate project is expected to rely heavily on Nvidia’s AI accelerators, the deal is likely to serve as a major boon for the two companies’ memory businesses.

OpenAI also expressed its intention to build large-scale AI data centers in Korea. According to presidential chief of staff for policy Kim Yong-beom, the U.S. tech giant will build large-scale AI data centers in South Jeolla Province and Pohang, North Gyeongsang Province. SK Group will cooperate for the center in South Jeolla Province, while Samsung Group will partner for the center in Pohang.

Along with the chipmakers, affiliates of Samsung and SK Group also joined the partnerships.

Samsung SDS, the IT arm of Samsung Group, will cooperate in the design, construction and operation of OpenAI’s Stargate AI data center as a partner company, while OpenAI will provide its AI models through the cloud infrastructure. The company said its experience of running five data centers in Korea has proven its capabilities in related business.

Samsung C&T and Samsung Heavy Industries will join forces with OpenAI for data center construction, including a floating data center.

A floating data center is an offshore facility having advantages such as fewer spatial constraints compared to land-based data centers as well as lower cooling costs. Due to technical difficulties, research and development for floating data centers is conducted in only a few countries.

SK Telecom signed an MOU with OpenAI to build an exclusive AI data center for the U.S. tech company called Stargate Korea in South Jeolla Province.

“We are very honored to be here and to support Korea's ambitions to develop an incredible thriving local AI ecosystem,” Sam Altman said. “We're very excited to get to build Stargate Korea and data centers with our wonderful partners to support the sovereign AI needs of Korea.”

OpenAI CEO Sam Altman, second from right, speaks to President Lee Jae Myung during their meeting at the presidential office in Yongsan District, Seoul, Wednesday. Samsung Electronics Executive Chairman Lee Jae-yong, third from left, and SK Group Chairman Chey Tae-won, second from left, also joined the meeting. Yonhap