26 Sources
26 Sources
[1]
OpenAI ropes in Samsung, SK Hynix to source memory chips for Stargate | TechCrunch
OpenAI is leaving few stones unturned in the race to build compute capacity for its AI efforts. The ChatGPT maker on Wednesday said it had struck agreements with two of the world's biggest manufacturers of memory chips, Samsung Electronics and SK Hynix, to make DRAM wafers for the Stargate AI infrastructure project, and build data centers in South Korea. The companies signed the letters of intent following a meeting in Seoul between OpenAI CEO Sam Altman, South Korea's president Lee Jae-myung, Samsung Electronics' executive chairman Jay Y. Lee, and SK chairman Chey Tae-won. Under the deal, Samsung and SK Hynix plan to scale their manufacturing to produce up to 900,000 high-bandwidth memory DRAM memory chips per month for use in Stargate and AI data centers. SK Group noted in a separate statement that this would be more than double the current industry capacity for high-bandwidth memory chips. Stargate is a massive infrastructure project by OpenAI, Oracle, and SoftBank that seeks to spend $500 billion to build data centers dedicated to AI development in the United States. Wednesday's agreements follow a month of frenetic investment in AI compute capacity, and OpenAI has been the locus of a lot of that activity. Just a couple of weeks ago, Nvidia said it would invest up to $100 billion in OpenAI as part of a deal that would give the ChatGPT maker access to more than 10 gigawatts of compute capacity via Nvidia's AI training systems. The following day, OpenAI said it would build out five data centers with SoftBank and Oracle for the Stargate project, aiming to increase its total compute capacity to 7 gigawatts. Earlier in September, Oracle agreed to sell $300 billion of compute capacity to OpenAI over five years. OpenAI said it is also working with the Korean Ministry of Science and ICT to find opportunities to build AI data centers outside Seoul, and that it had struck a separate deal with SK Telecom to build an AI data center. The AI company also signed a few other agreements with Samsung subsidiaries to explore avenues for building more data centers in the country. Samsung and SK Group will also integrate ChatGPT Enterprise and OpenAI APIs into their operations as part of the deal.
[2]
OpenAI taps Samsung for another 'strategic partnership'
OpenAI is teaming up with South Korea's Samsung and SK Hynix for "strategic partnerships" to supply the advanced computer chips needed for its mammoth Stargate project. The Korean firms said they will scale production in order to meet OpenAI's growing demand for memory chips needed to power its compute-hungry AI models. OpenAI said it expects to need as many as 900,000 semiconductor wafers each month from the two firms. OpenAI said it is also in talks with the companies to open two AI data centers in South Korea. Samsung said it would also explore the possibility of floating data centers, which it says could cut costs and reduce carbon emissions. The partnerships are the latest in a series of strategic moves for OpenAI as it secures compute, power, and cash for its AI projects. Last month, Nvidia said it will be investing up to $100 billion in the company as it scales.
[3]
OpenAI's Stargate project to consume up to 40% of global DRAM output -- inks deal with Samsung and SK hynix to the tune of up to 900,000 wafers per month
Samsung and SK hynix have inked preliminary agreements to supply memory to OpenAI's massive Stargate data center initiative, reports Reuters. Instead of actual tested and packaged DRAM chips or HBM stacks, the companies will supply Stargate undiced wafers, according to Bloomberg, which highlights the vast volumes of memory and other components that Stargate needs. For now, it looks like Stargate could consume nearly half of global DRAM output. Both Samsung and SK Hynix confirmed that OpenAI's anticipated demand could grow to 900,000 DRAM wafers monthly, which is an incredible volume that may represent around 40% of total DRAM output. The deal likely includes various types of memory, including commodity DDR5 and specialty HBM memory for AI processors. What remains to be seen is which company will dice the wafers and build actual DRAM chips, HBM stacks, and memory modules. To put the 900,000 DRAM wafers number into context: global 300mm fab capacity is projected to reach 10 million wafer starts per month (WSPM) in 2025, according to TechInsights. DRAM capacity -- which includes both commodity DDR5 and LPDDR4/LPDDR5 as well as premium HBM, and specialty DRAM types -- accounted for a 22% share (2.07 million WSPM) in 2024. Analysts predict that DRAM capacity could grow by 8.7% in 2025 to around 2.25 million WSPM, which means that Stargate plans to consume 40% of it. Stargate -- controlled by OpenAI, Oracle, and SoftBank -- aims to build multiple huge AI data centers globally. These facilities will require an enormous number of servers (each containing hundreds, if not thousands, of chips, including state-of-the-art compute GPUs like Nvidia's Blackwell), cooling equipment, and power delivery equipment. In addition, these data centers could even require dedicated power plants to feed them. As a result, Stargate executives, such as OpenAI's Sam Altman, are touring around the world to secure strategic supply contracts and partnerships, including those across the Asia-Pacific region. In addition to the memory wafer supply deal, Samsung companies are mulling other wide-ranging partnerships with OpenAI. Samsung SDS will collaborate with OpenAI on the architecture and operation of the Stargate AI data centers in Korea. The company will also offer consulting and integration services for businesses aiming to incorporate OpenAI's models into internal systems. Additionally, Samsung SDS has secured a reseller role for OpenAI services in South Korea and plans to help local firms adopt ChatGPT Enterprise. Samsung C&T and Samsung Heavy Industries will work with OpenAI to develop floating data centers that improve cooling efficiency and cut emissions. While these facilities remain technically challenging to build, Samsung's maritime and construction units plan to leverage their engineering capabilities to address those limitations.
[4]
Samsung and SK Hynix to feed OpenAI's megaproject
Duo pledge memory for Stargate to the tune of 900k DRAM wafer starts a month OpenAI has persuaded two of South Korea's chip titans to fuel its bid to build the biggest AI engine yet. ChatGPT factory OpenAI confirmed this week that Samsung and SK Hynix will join the Stargate initiative, pledging to supply vast quantities of advanced memory chips and to collaborate on local AI datacenters. The agreement, announced in tandem with Seoul officials, solidifies Korea's role as a core supplier in what OpenAI boss Sam Altman modestly described as the largest infrastructure project since the dawn of the internet. Stargate itself, unveiled in January, is OpenAI's blueprint for a global buildout of AI infrastructure, with as much as half a trillion dollars funnelled into new datacenters and compute capacity over the next four years. The company started by cutting a $100 billion check and striking a headline deal with Oracle to deploy gigawatts of datacenter power in the US. But even the fattest servers grind to a halt without enough memory, and it's here that Korea's giants enter the picture. Samsung and SK Hynix have signed letters of intent to crank out the high-bandwidth DRAM and other memory silicon needed to keep future large language models from stalling. OpenAI says its Korean pals will be tasked with churning out around 900,000 DRAM wafer starts a month, a scale that only the biggest fabs on the planet can support. The agreements also cover a tie-up with SK Telecom to explore building an AI datacenter in Korea, plus separate talks with Samsung C&T, Samsung Heavy Industries, and Samsung SDS to scope out extra capacity in the country. Samsung SDS, the company's IT arm, will even sell ChatGPT Enterprise to local businesses as part of the tie-up. Seoul is pitching the deal as Korea's ticket to the big league of AI infrastructure, hoping to surf the same wave that has made Nvidia the market's darling. OpenAI isn't chasing bragging rights so much as covering its backside - making sure it has enough suppliers scattered around the globe so a hiccup in one place doesn't bring the whole show down. Samsung shares hit their highest level since January 2021 on the news, while SK Hynix stock surged almost 10 percent to levels not seen since 2000. OpenAI, meanwhile, just notched a sky-high paper valuation. According to the Financial Times, a secondary share sale closed this week that saw employees and early investors cash out around $6.6 billion worth of stock. This pushed the company's value to a cool $500 billion - a valuation so high even ChatGPT would struggle to justify it. ®
[5]
Samsung, SK Hynix Ink Deal to Supply Gear to OpenAI's Stargate
Samsung Electronics Co. and SK Hynix Co. have forged initial agreements to supply chips and other gear to OpenAI's Stargate project, a deal that helps shore up their lead in advanced memory chips for AI. OpenAI's Sam Altman signed a letter of intent Wednesday to enlist Korea's two biggest companies in the data center construction effort, which involves the biggest players in artificial intelligence from Nvidia Corp. to Oracle Corp. Overall demand from OpenAI could reach 900,000 wafers per month as Stargate expands across the globe, the Korean companies said in separate statements.
[6]
SK Hynix and Samsung shares leap after OpenAI deal
SK Hynix and Samsung Electronics shares jumped after the two biggest South Korean chipmakers signed a letter of intent with OpenAI to supply semiconductors for the US AI company's $500bn Stargate data centre project. Shares of SK Hynix, the leading producer of high bandwidth memory products used in Nvidia's most advanced artificial intelligence chips, climbed as much as 12 per cent on Thursday, while Samsung Electronics shares rose by close to 5 per cent to reach their highest level since 2021. The letter of intent was signed on Wednesday during a visit to Seoul by OpenAI chief executive Sam Altman, who met the chairs of SK Group and Samsung as well as South Korea's president Lee Jae Myung. SK Hynix "will establish a production system capable of promptly meeting OpenAI's HBM demand for up to 900,000 Dram wafers per month", said the chipmaker's parent company. "It is more than double the current HBM industry capacity, underscoring the immense semiconductor demand driven by the Stargate project," it said, noting that SK's telecoms subsidiary would also work with OpenAI to build a "Stargate Korea" AI data centre in the south-west of the country. Nvidia last month announced plans to invest up to $100bn in OpenAI in return for a significant stake in the ChatGPT maker, as part of a deal to build up to 10 gigawatts of processing capacity -- the equivalent output of 10 nuclear reactors. Memory chips are critical for the performance of AI semiconductors and data centres due to the huge amounts of information that need to be processed by leading large language models. Shares in SK Hynix, which enjoys a more than 50 per cent share of the global HBM market, have risen more than 430 per cent since the beginning of 2023 as demand for AI services has boomed. Its HBM3E chips are capable of transferring data equivalent to 200 feature-length movies every second, according to the company. Samsung accounts for just over a quarter of the global HBM market with US-based Micron the other leading player in the sector, according to consultancy TrendForce. Samsung said that OpenAI would work with other subsidiaries in its Korean conglomerate including the construction and shipbuilding units in order to build "floating data centres" that it said can "address land scarcity, lower cooling costs and reduce carbon emissions".
[7]
Samsung, SK Hynix shares rally on OpenAI partnerships
SEOUL, Oct 2 (Reuters) - Shares of Samsung Electronics (005930.KS), opens new tab and SK Hynix (000660.KS), opens new tab rallied on Thursday after the South Korean chipmakers signed letters of intent to supply memory chips for OpenAI's data centers. Samsung Electronics rose more than 4% to its highest level since January 2021 and SK Hynix rose more than 8% to an all-time high, leading the benchmark KOSPI index's (.KS11), opens new tab more than 2% gains to a record. Samsung Electronics' affiliates Samsung SDI (006400.KS), opens new tab, Samsung C&T (028260.KS), opens new tab and Samsung SDS (018260.KS), opens new tab also rose sharply in early Asia trade on partnerships with the U.S. artificial intelligence firm. Reporting by Jihoon Lee; Editing by Muralikumar Anantharaman Our Standards: The Thomson Reuters Trust Principles., opens new tab
[8]
SK Hynix shares hit multidecade highs, Samsung also surges on OpenAI partnership
Shares of South Korean chip heavyweights Samsung Electronics and SK Hynix surged Thursday, a day after the two companies partnered with artificial-intelligence major OpenAI as part of the U.S. firm's Stargate initiative. Shares of Samsung hit their their highest since January 2021, rising over 4%, while SK Hynix stock surged more than 9% to hit its highest since 2000. OpenAI said in a statement that this partnership will "focus on increasing the supply of advanced memory chips essential for next-generation AI and expanding data center capacity in Korea." The ChatGPT-maker said the two chipmakers plan to scale up production of advanced memory chips, which are critical to power its AI models. -- This is breaking news, please check back for updates.
[9]
OpenAI announces partnerships with South Korean chip giants over Stargate project
SEOUL, South Korea (AP) -- OpenAI and South Korean tech conglomerates Samsung and SK on Wednesday announced partnerships to provide chips and other solutions for Stargate, a $500 billion project aimed at building infrastructure tied to artificial intelligence. The announcements came after OpenAI CEO Sam Altman met with South Korean President Lee Jae Myung and Korean corporate leaders in Seoul. Lee hailed the partnerships as a major opportunity for South Korea's semiconductor industry to solidify its role in AI and create more jobs. The partnerships commit Samsung Electronics and SK Hynix -- the world's two largest makers of memory chips -- to accelerate their production of advanced chips to meet OpenAI's increasing memory demands for the Stargate initiative, according to the companies' statements. The ChatGPT maker also reached separate agreements with SK Telecom, South Korea's top wireless carrier, to explore building an AI data center in the country, dubbed "Stargate Korea," and with other Samsung affiliates to collaborate on data center technologies and potentially expand local capacity. Samsung said the agreements between OpenAI, Samsung C&T, and Samsung Heavy Industries include a joint commitment to develop floating data centers, which potentially offer advantages over land-based centers by easing land scarcity, reducing cooling costs and cutting carbon emissions. "Korea has all the ingredients to be a global leader in AI -- incredible tech talent, world-class infrastructure, strong government support, and a thriving AI ecosystem," Altman said in a statement. Samsung Electronics Chairman Lee Jae-yong said the world is at a "pivotal moment with the advent of AI, and the industry must collaborate to effectively chart the future." Stargate, a joint venture between OpenAI, SoftBank, and Oracle backed by U.S. President Donald Trump, aims for a significant expansion of computing infrastructure to support the development and delivery of AI products. The companies have committed to eventually invest up to $500 billion to build large-scale data centers and secure energy generation needed to further AI development. OpenAI said last week that its flagship AI data center in Texas will be joined by five others around the United States, including two more data center complexes in Texas, one in New Mexico, one in Ohio and another in a Midwest location it hasn't yet disclosed.
[10]
OpenAI and Samsung plan floating data centers and power plants
OpenAI and Samsung and have signed a letter of intent for a sweeping partnership that spans semiconductors, data centers, shipbuilding, cloud services, and maritime technologies. The announcement was made at a ceremony in Seoul attended by senior leaders from across Samsung's electronics, shipbuilding, construction, and IT services businesses. The agreement states that Samsung Electronics will act as a strategic memory partner for OpenAI's Project Stargate initiative, which aims to build out masses of new AI infrastructure. OpenAI has projected its memory demand could reach 900,000 DRAM wafers per month, and Samsung will supply high-performance, energy-efficient memory solutions to meet the requirement. Samsung SDS will work with OpenAI to design, develop, and operate AI data centers and provide enterprise AI services. It will also act as a reseller of OpenAI's ChatGPT Enterprise in Korea, supporting adoption by local businesses. Samsung Heavy Industries and Samsung C&T will collaborate with OpenAI on floating data centers, with possible expansion into floating power plants and control centers. "Floating data centers... can address land scarcity, lower cooling costs and reduce carbon emissions," the companies said in their letter of intent. As The Stack notes, floating data centers remain rare, but interest is growing. The Stockton project in California has been running since 2021, Japanese firms and Yokohama city are planning a solar- and battery-powered design, and in June 2025, the American Bureau of Shipping and Herbert Engineering proposed a nuclear-powered floating data center concept. The announcement comes a matter of days after we revealed Nvidia had poured $100 billion into OpenAI (to spend on Nvidia's own chips, naturally), and suggests the ChatGPT creator is looking to reduce its dependence on hyperscaler partners such as Microsoft. With AI rivals like Meta and Google rapidly expanding their own infrastructure, there is growing pressure on OpenAI to establish itself as a large-scale operator in its own right.
[11]
Samsung and OpenAI Announce Strategic Partnership To Accelerate Advancements in Global AI Infrastructure
Samsung will bring together industry-leading technologies and innovations across advanced semiconductors, data centers, shipbuilding, cloud services and maritime technologies OpenAI, Samsung Electronics, Samsung SDS, Samsung C&T and Samsung Heavy Industries today announced a letter of intent (LOI) for their strategic partnership to accelerate advancements in global AI data center infrastructure and develop future technologies together in relevant fields. This expansive collaboration will bring together the collective strengths and leadership of Samsung companies across semiconductors, data centers, shipbuilding, cloud services and maritime technologies. The signing ceremony was held at Samsung's corporate headquarters in Seoul, Korea, attended by Young Hyun Jun, Vice Chairman & CEO of Samsung Electronics; Sung-an Choi, Vice Chairman & CEO of Samsung Heavy Industries; Sechul Oh, President & CEO of Samsung C&T; and Junehee Lee, President & CEO of Samsung SDS. Samsung Electronics will work with OpenAI as a strategic memory partner to supply advanced semiconductor solutions for OpenAI's global Stargate initiative. With OpenAI's memory demand projected to reach up to 900,000 DRAM wafers per month, Samsung will contribute toward meeting this need with its extensive lineup of high-performance, energy-efficient DRAM solutions. As a comprehensive semiconductor solutions provider, Samsung's leading technologies span across memory, logic and foundry with a diverse product portfolio that supports the full AI workflow from training to inference. The company also brings differentiated capabilities in advanced chip packaging and heterogeneous integration between memory and system semiconductors, enabling it to provide unique solutions for OpenAI. Samsung SDS has entered into a potential partnership with OpenAI to jointly develop AI data centers and provide enterprise AI services. Leveraging its expertise in advanced data center technologies, Samsung SDS will collaborate with OpenAI in the design, development and operation of the Stargate AI data centers. Under the LOI, Samsung SDS can now provide consulting, deployment and management services for businesses seeking to integrate OpenAI's AI models into their internal systems. In addition, Samsung SDS has signed a reseller partnership for OpenAI's services in Korea and plans to support local companies in adopting OpenAI's ChatGPT Enterprise offerings. Samsung C&T and Samsung Heavy Industries will collaborate with OpenAI to advance global AI data centers, with a particular focus on the joint development of floating data centers. Floating data centers are considered to have advantages over data centers because they can address land scarcity, lower cooling costs and reduce carbon emissions. Still, their technical complexity has so far limited wider deployment. Building on their proprietary technologies, Samsung C&T and Samsung Heavy Industries will also explore opportunities to pursue projects in floating power plants and control centers, in addition to floating data center infrastructure. Starting with the landmark partnership with OpenAI, Samsung plans to fully support Korea's goals to become one of the world's top three nations in AI and create new opportunities in the field. Samsung is also exploring broader adoption of ChatGPT within the companies to facilitate AI transformation in the workplace. "OpenAI is an AI research and deployment company. Our mission is to ensure that artificial general intelligence benefits all of humanity. Samsung C&T is an international corporation with four business groups: Engineering & Construction, Trading & Investment, Fashion, and Resort. Together, they provide services and products in over 50 countries. Starting out as a trading firm in 1938, Samsung C&T was the first company to operate under the Samsung name. Find out more about Samsung C&T at http://www.samsungcnt.com. Samsung Heavy Industries Co., Ltd. (SHI) stands as one of the world's leading shipbuilders. Established in 1974, the company has consistently pushed the boundaries of engineering and construction, solidifying its position as a top shipbuilder in South Korea, while executing a variety of projects in the shipbuilding and offshore business. The company's expertise lies in the engineering, procurement, construction, and delivery of a wide range of vessels and offshore facilities. SHI is particularly recognized for its capabilities in building highly technical, high-value-added ships, including: LNG Carrier, Container Ship, FPSO, FLNG, etc. SHI is a key innovator in the industry and has a history of developing and building "world's first" products, such as the Arctic Shuttle-Tanker and FLNG. For more information, visit https://www.samsungshi.com. A leader in data and computing technology, Samsung SDS combines generative AI technology with cloud and digital logistics to lead the hyper-automation innovation of companies. Samsung SDS helps companies enhance their productivity and competitiveness by leveraging its Samsung Cloud Platform (SCP) optimized for enterprises, all-in-one managed services reflecting 40 years of industry-specific experience, and SaaS solutions for business innovations.
[12]
OpenAI announces partnerships with South Korean chip giants over Stargate project
OpenAI and South Korean tech conglomerates Samsung and SK on Wednesday announced partnerships to provide chips and other solutions for Stargate, a $500 billion project aimed at building infrastructure tied to artificial intelligence. The announcements came after OpenAI CEO Sam Altman met with South Korean President Lee Jae Myung and Korean corporate leaders in Seoul. Lee hailed the partnerships as a major opportunity for South Korea's semiconductor industry to solidify its role in AI and create more jobs. The partnerships commit Samsung Electronics and SK Hynix -- the world's two largest makers of memory chips -- to accelerate their production of advanced chips to meet OpenAI's increasing memory demands for the Stargate initiative, according to the companies' statements. The ChatGPT maker also reached separate agreements with SK Telecom, South Korea's top wireless carrier, to explore building an AI data center in the country, dubbed "Stargate Korea," and with other Samsung affiliates to collaborate on data center technologies and potentially expand local capacity. Samsung said the agreements between OpenAI, Samsung C&T, and Samsung Heavy Industries include a joint commitment to develop floating data centers, which potentially offer advantages over land-based centers by easing land scarcity, reducing cooling costs and cutting carbon emissions. "Korea has all the ingredients to be a global leader in AI -- incredible tech talent, world-class infrastructure, strong government support, and a thriving AI ecosystem," Altman said in a statement. Samsung Electronics Chairman Lee Jae-yong said the world is at a "pivotal moment with the advent of AI, and the industry must collaborate to effectively chart the future." Stargate, a joint venture between OpenAI, SoftBank, and Oracle backed by U.S. President Donald Trump, aims for a significant expansion of computing infrastructure to support the development and delivery of AI products. The companies have committed to eventually invest up to $500 billion to build large-scale data centers and secure energy generation needed to further AI development. OpenAI said last week that its flagship AI data center in Texas will be joined by five others around the United States, including two more data center complexes in Texas, one in New Mexico, one in Ohio and another in a Midwest location it hasn't yet disclosed.
[13]
OpenAI's Stargate locks in Korean chipmakers, boosting shares
SK Hynix and Samsung are poised to benefit from unprecedented demand for high-bandwidth memory as OpenAI embarks on its $500bn (€425bn) global AI infrastructure push. Two of South Korea's biggest technology firms saw their shares jump in Seoul trading on Thursday after OpenAI announced it would enlist the country's tech memory champions to supply its colossal 'Stargate' data-centre project. Shares of SK Hynix surged around 10% and Samsung Electronics climbed over 3% after news broke that both Korean giants had secured a role in supplying high-bandwidth memory (HBM) for the Stargate supercomputer project. Samsung Electronics is the world's largest producer of memory chips, dominating both DRAM -- the main working memory in computers and data servers -- and NAND flash, which powers storage in everything from smartphones to data centres. Its smaller rival SK Hynix ranks second in global DRAM output and has carved out a lead in high-bandwidth memory (HBM), the ultra-fast chips that underpin Nvidia's AI processors. Together, the two South Korean giants command more than half of the world's memory market, giving them an outsized influence over pricing, capacity and the technological direction of an industry that sits at the heart of the digital economy. The initiative, valued at as much as $500 billion (€425.3bn), is expected to fuel an unprecedented wave of capital spending across the artificial intelligence supply chain. High-bandwidth memory (HBM) is crucial for AI because it allows chips like Nvidia's to move massive amounts of data at ultra-fast speeds, needed for its ever-developing computing needs, enabling the training and deployment of large-scale models that standard memory processing cannot handle. The Stargate project plans to set up a vast network of AI supercomputers across several continents and is expected to require hundreds of thousands of HBM wafers or stacks every month, according to industry estimates. At those volumes, it would mark a massive change in global semiconductor capacity, reinforcing SK Hynix's role as the leading supplier of HBM3 chips and bolstering Samsung's efforts to expand in the next generation of HBM4. The plan also carries crucial strategic implications for South Korea itself, with Seoul long having sought to position itself as a regional technology hub beyond hardware manufacturing. By hosting one of the largest AI infrastructure projects ever conceived, OpenAI and its US backers are reinforcing ties with a close ally but also diversifying away from China-sensitive ties in the AI technology chain. Washington has been pushing to secure critical facilities in friendly countries, and Korea's export-driven memory chip sector offers both scale and the necessary political alignment.
[14]
OpenAI announces partnerships with South Korean chip giants over Stargate project
SEOUL, South Korea (AP) -- OpenAI and South Korean tech conglomerates Samsung and SK on Wednesday announced partnerships to provide chips and other solutions for Stargate, a $500 billion project aimed at building infrastructure tied to artificial intelligence. The announcements came after OpenAI CEO Sam Altman met with South Korean President Lee Jae Myung and Korean corporate leaders in Seoul. Lee hailed the partnerships as a major opportunity for South Korea's semiconductor industry to solidify its role in AI and create more jobs. The partnerships commit Samsung Electronics and SK Hynix -- the world's two largest makers of memory chips -- to accelerate their production of advanced chips to meet OpenAI's increasing memory demands for the Stargate initiative, according to the companies' statements. The ChatGPT maker also reached separate agreements with SK Telecom, South Korea's top wireless carrier, to explore building an AI data center in the country, dubbed "Stargate Korea," and with other Samsung affiliates to collaborate on data center technologies and potentially expand local capacity. Samsung said the agreements between OpenAI, Samsung C&T, and Samsung Heavy Industries include a joint commitment to develop floating data centers, which potentially offer advantages over land-based centers by easing land scarcity, reducing cooling costs and cutting carbon emissions. "Korea has all the ingredients to be a global leader in AI -- incredible tech talent, world-class infrastructure, strong government support, and a thriving AI ecosystem," Altman said in a statement. Samsung Electronics Chairman Lee Jae-yong said the world is at a "pivotal moment with the advent of AI, and the industry must collaborate to effectively chart the future." Stargate, a joint venture between OpenAI, SoftBank, and Oracle backed by U.S. President Donald Trump, aims for a significant expansion of computing infrastructure to support the development and delivery of AI products. The companies have committed to eventually invest up to $500 billion to build large-scale data centers and secure energy generation needed to further AI development. OpenAI said last week that its flagship AI data center in Texas will be joined by five others around the United States, including two more data center complexes in Texas, one in New Mexico, one in Ohio and another in a Midwest location it hasn't yet disclosed.
[15]
OpenAI announces partnerships with South Korean chip giants over Stargate project
SEOUL, South Korea -- OpenAI and South Korean tech conglomerates Samsung and SK on Wednesday announced partnerships to provide chips and other solutions for Stargate, a $500 billion project aimed at building infrastructure tied to artificial intelligence. The announcements came after OpenAI CEO Sam Altman met with South Korean President Lee Jae Myung and Korean corporate leaders in Seoul. Lee hailed the partnerships as a major opportunity for South Korea's semiconductor industry to solidify its role in AI and create more jobs. The partnerships commit Samsung Electronics and SK Hynix -- the world's two largest makers of memory chips -- to accelerate their production of advanced chips to meet OpenAI's increasing memory demands for the Stargate initiative, according to the companies' statements. The ChatGPT maker also reached separate agreements with SK Telecom, South Korea's top wireless carrier, to explore building an AI data center in the country, dubbed "Stargate Korea," and with other Samsung affiliates to collaborate on data center technologies and potentially expand local capacity. Samsung said the agreements between OpenAI, Samsung C&T, and Samsung Heavy Industries include a joint commitment to develop floating data centers, which potentially offer advantages over land-based centers by easing land scarcity, reducing cooling costs and cutting carbon emissions. "Korea has all the ingredients to be a global leader in AI -- incredible tech talent, world-class infrastructure, strong government support, and a thriving AI ecosystem," Altman said in a statement. Samsung Electronics Chairman Lee Jae-yong said the world is at a "pivotal moment with the advent of AI, and the industry must collaborate to effectively chart the future." Stargate, a joint venture between OpenAI, SoftBank, and Oracle backed by U.S. President Donald Trump, aims for a significant expansion of computing infrastructure to support the development and delivery of AI products. The companies have committed to eventually invest up to $500 billion to build large-scale data centers and secure energy generation needed to further AI development. OpenAI said last week that its flagship AI data center in Texas will be joined by five others around the United States, including two more data center complexes in Texas, one in New Mexico, one in Ohio and another in a Midwest location it hasn't yet disclosed.
[16]
OpenAI Announces Partnerships With South Korean Chip Giants Over Stargate Project
SEOUL, South Korea (AP) -- OpenAI and South Korean tech conglomerates Samsung and SK on Wednesday announced partnerships to provide chips and other solutions for Stargate, a $500 billion project aimed at building infrastructure tied to artificial intelligence. The announcements came after OpenAI CEO Sam Altman met with South Korean President Lee Jae Myung and Korean corporate leaders in Seoul. Lee hailed the partnerships as a major opportunity for South Korea's semiconductor industry to solidify its role in AI and create more jobs. The partnerships commit Samsung Electronics and SK Hynix -- the world's two largest makers of memory chips -- to accelerate their production of advanced chips to meet OpenAI's increasing memory demands for the Stargate initiative, according to the companies' statements. The ChatGPT maker also reached separate agreements with SK Telecom, South Korea's top wireless carrier, to explore building an AI data center in the country, dubbed "Stargate Korea," and with other Samsung affiliates to collaborate on data center technologies and potentially expand local capacity. Samsung said the agreements between OpenAI, Samsung C&T, and Samsung Heavy Industries include a joint commitment to develop floating data centers, which potentially offer advantages over land-based centers by easing land scarcity, reducing cooling costs and cutting carbon emissions. "Korea has all the ingredients to be a global leader in AI -- incredible tech talent, world-class infrastructure, strong government support, and a thriving AI ecosystem," Altman said in a statement. Samsung Electronics Chairman Lee Jae-yong said the world is at a "pivotal moment with the advent of AI, and the industry must collaborate to effectively chart the future." Stargate, a joint venture between OpenAI, SoftBank, and Oracle backed by U.S. President Donald Trump, aims for a significant expansion of computing infrastructure to support the development and delivery of AI products. The companies have committed to eventually invest up to $500 billion to build large-scale data centers and secure energy generation needed to further AI development. OpenAI said last week that its flagship AI data center in Texas will be joined by five others around the United States, including two more data center complexes in Texas, one in New Mexico, one in Ohio and another in a Midwest location it hasn't yet disclosed.
[17]
OpenAI Taps Samsung And SK Hynix For Massive AI Data Push, Including New Korea Data Center - Microsoft (NASDAQ:MSFT), NVIDIA (NASDAQ:NVDA)
Samsung Electronics (OTC:SSNLF) and SK Hynix bagged initial deals on Wednesday to supply chips and equipment for Microsoft (NASDAQ:MSFT) backed OpenAI's Stargate project, reinforcing their dominance in advanced memory chips for artificial intelligence. Beyond memory chips, Samsung SDS, Samsung C&T, and Samsung Heavy Industries explored collaborations with OpenAI in floating data centers and advanced infrastructure design. Meanwhile, SK Telecom and OpenAI will jointly construct a dedicated AI data center in southwest Korea. Also Read: OpenAI's 4.5 GW Lease From Oracle Fuels Stargate's $500 Billion Vision SK Hynix remains a leading supplier of high-bandwidth memory (HBM) used in Nvidia's (NASDAQ:NVDA) AI accelerators. At the same time, Samsung continues to press for a larger share of the booming market. OpenAI CEO Sam Altman signed a letter of intent in Seoul with Korea's two most prominent companies, formalizing their role in one of the most ambitious AI infrastructure projects to date, Bloomberg reported on Wednesday. The Stargate initiative, backed by Nvidia, Oracle (NYSE:ORCL), and other global players, could generate demand of up to 900,000 wafers per month as it scales worldwide -- more than double the current international capacity for HBM, according to SK Hynix. Altman's Asia tour also includes meetings with Taiwan Semiconductor Manufacturing Co (NYSE:TSM) and Hon Hai Precision Industry in Taipei. Oracle deepened its role in OpenAI's $500 billion Stargate initiative by committing to expand U.S. data centers alongside OpenAI and SoftBank (OTC:SFTBY), after launching a $15 billion bond sale. The projects -- spanning Texas, New Mexico, the Midwest, and additional SoftBank-led builds in Ohio and Texas -- aim to add up to seven gigawatts of capacity in the near term, create 25,000 onsite jobs, and eventually scale to 10 gigawatts. Price Action: ORCL stock is down 0.80% at $279.00 as of the last check on Wednesday. NVDA is down 0.58%. Read Next: Nvidia Powers OpenAI And Oracle's $100 Billion Stargate Infrastructure, First AI Data Center Set To Launch in Texas Photo: Shutterstock MSFTMicrosoft Corp$514.40-0.69%OverviewNVDANVIDIA Corp$184.84-0.93%ORCLOracle Corp$279.50-0.62%SFTBYSoftBank Group Corp$62.79-0.81%SSNLFSamsung Electronics Co Ltd$42.480.34%TSMTaiwan Semiconductor Manufacturing Co Ltd$282.121.01%Market News and Data brought to you by Benzinga APIs
[18]
South Korea's Samsung and SK hynix join OpenAI's Stargate project
South Korea's Samsung Electronics (OTCPK:SSNLF) and SK hynix (OTCPK:HXSCF) are joining OpenAI's Stargate initiative to advance global AI infrastructure. Microsoft (NASDAQ:MSFT)-backed OpenAI said these partnerships will focus on increasing the supply of advanced memory chips essential for next-generation The partnership will boost advanced memory chip supply and data center capacity, making Korea pivotal in the AI supply chain and supporting global AI advancements. Floating data centers can mitigate land scarcity, lower cooling costs, and reduce carbon emissions, but technical complexity has limited their broader use so far. The agreements aim to promote regional economic growth, balanced job creation, and elevate Korea among the top global AI nations.
[19]
Samsung and OpenAI announce strategic partnership
OpenAI and several Samsung affiliates -- Samsung Electronics, Samsung SDS, Samsung C&T, and Samsung Heavy Industries -- have announced a letter of intent (LOI) for a strategic partnership. The collaboration aims to accelerate the development of global AI data center infrastructure and co-develop future technologies. The agreement brings together Samsung's expertise across semiconductors, data centers, shipbuilding, and cloud services with OpenAI's leadership in artificial intelligence. A signing ceremony was held at Samsung's headquarters in Seoul, attended by top executives from each participating company. Contributions by Samsung Affiliates Samsung Electronics will act as a strategic memory partner for OpenAI's global "Stargate" initiative. The company will supply advanced, high-performance, and energy-efficient DRAM solutions to meet OpenAI's projected memory demand of up to 900,000 DRAM wafers per month. Samsung Electronics will also leverage its comprehensive capabilities in logic, foundry services, and advanced chip packaging to provide unique solutions for OpenAI. Samsung SDS has entered into a potential partnership to jointly develop AI data centers and offer enterprise AI services. The company will contribute its expertise in the design, development, and operation of the Stargate AI data centers. Under the agreement, Samsung SDS can also provide consulting and management services for businesses integrating OpenAI models. Additionally, Samsung SDS has signed a reseller partnership to offer OpenAI's ChatGPT Enterprise services to local companies in South Korea. Samsung C&T and Samsung Heavy Industries will collaborate with OpenAI on global AI data centers, with a specific focus on the joint development of floating data centers. This approach aims to address challenges such as land scarcity and high cooling costs associated with traditional data centers while potentially reducing carbon emissions. The companies will also explore related opportunities in floating power plants and control centers. Broader Goals and Future Plans This partnership is part of Samsung's broader strategy to support South Korea's national goal of becoming one of the world's top three nations in artificial intelligence. Internally, Samsung is also exploring a wider adoption of ChatGPT to drive AI transformation within its own workplace.
[20]
South Korea shoots for the Stargate
Samsung and SK's new partnership with OpenAI is significant in that Korean companies have now cemented themselves as essential allies of the US-led Stargate project, worth US$500 billion. Many observers see domestic firms' assumption of the role of the main suppliers of artificial intelligence memory chips for the massive AI infrastructure project as a promising sign that Korea is well on its way to becoming one of the world's top three AI powerhouses. OpenAI signed letters of intent with SK Hynix and Samsung Electronics for memory supply on Wednesday. The projected high-bandwidth memory (HBM) supply volume, based on wafers, is up to 900,000 wafers per month -- a number that is double the current global production capacity. The project will require Korea, a manufacturing powerhouse, and the US, a pioneer of AI technology, to work closely together. High-bandwidth memory chips are a core component used in AI accelerators that perform data learning for AI. "Korea has all the ingredients to be a global leader in AI -- incredible tech talent, world-class infrastructure, strong government support, and a thriving AI ecosystem," OpenAI CEO Sam Altman stated during a meeting with President Lee Jae Myung. "Samsung Electronics and SK Hynix plan to scale up production of advanced memory chips, targeting 900,000 DRAM wafer starts per month at an accelerated capacity rollout, critical for powering OpenAI's advanced AI models," OpenAI noted in a statement. SK Chairperson Chey Tae-won also stated, "We are honored to participate as a core partner in the Stargate project, aimed at building future global AI infrastructure. By leveraging SK's integrated AI infrastructure capabilities from memory semiconductors to data centers, we will actively contribute to global AI infrastructure innovation and strengthen Korea's AI competitiveness at a national level." Samsung Electronics similarly said it would "contribute toward meeting OpenAI's memory demand with its extensive lineup of high-performance, energy-efficient DRAM solutions." Samsung and SK's resolve to cooperate with OpenAI when constructing data centers and building AI services demonstrates how both companies are going beyond providing chips to AI companies to be active participants in the construction of an AI ecosystem. SK Telecom signed a memorandum of understanding with OpenAI, promising to join efforts in building an AI data center in South Jeolla Province. This marks a new collaborative effort following the SK Group's groundbreaking ceremony in August with Amazon Web Services to build an AI data center in Ulsan. Samsung Group subsidiaries also signed letters of intent to jointly engage in the development of data centers and the provision of AI services. Samsung C&T and Samsung Heavy Industries will collaborate with OpenAI to develop floating data centers -- watertight structures offshore -- with one expected to be based in Pohang, North Gyeongsang Province. These types of data centers are considered advantageous as they are not hindered by land scarcity, cost less to cool, and cut back on carbon emissions. Samsung SDS has pledged to strengthen cooperation in the design, construction, and operations of the data center. However, as the funds needed for the Stargate project are astronomical, some say it is too early to predict how profitable participating in this initiative will be. Reuters recently reported that OpenAI expects to lease, not buy, chips needed for its AI data centers. By Park Jong-o, staff reporter
[21]
Samsung, SK form AI infrastructure partnership with OpenAI - The Korea Times
Deals secure chip supply worth hundreds of billions of dollars Samsung and SK each signed comprehensive partnerships on artificial intelligence (AI) infrastructure with OpenAI, during OpenAI CEO Sam Altman's visit to Korea, Wednesday. The partnerships, respective letter of intent with Samsung Group and SK Group, will each enable Samsung Electronics and SK hynix to supply AI-specific memory chips worth hundreds of billions of dollars for Stargate project, a $500 billion joint venture between OpenAI, Oracle and SoftBank for AI infrastructure in the U.S. As part of Stargate project, OpenAI expects to need about 900,000 wafers' worth of high-performance DRAM each month to empower 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 base. 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 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. 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 Stargate project" and secure manufacturing capacity to meet OpenAI's demand. 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 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." Along with cooperating for GPUs, SK hynix and OpenAI will discuss further details on expanding the two sides' cooperation. "The deals come as a critical juncture for the Korean AI ecosystem, as guaranteed 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," President Lee said. "The HBM supply partnership LOIs signed by the three companies are 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."
[22]
Samsung, SK sign on to OpenAI's Stargate initiative as strategic partners
South Korean President Lee Jae Myung speaks with OpenAI CEO Sam Altman at the presidential office in Seoul on Oct. 1, 2025. (Yonhap) Samsung and SK will join OpenAI as key strategic partners in its Stargate project, a quest to build an overarching AI infrastructure platform. The Korean companies are expected to expedite their high-bandwidth memory chip production more than twice the current amount to meet OpenAI's requirements and will join the company's efforts to develop and construct AI data centers. As South Korean companies join OpenAI and its efforts to develop a global AI infrastructure, experts laud the move as one that lays the groundwork for developing strategic alliances between nations amid the worldwide competition for AI hegemony. President Lee Jae Myung has also stated that he will consider relaxing financial regulations to facilitate investment in the AI and semiconductor sectors. Samsung Electronics Executive Chairperson Lee Jae-yong and SK Chairperson Chey Tae-won held separate meetings with OpenAI CEO Sam Altman at Samsung's headquarters in Seoul's Seocho District and the SK Building in Jongno to sign letters of intent for this partnership on Wednesday. During the afternoon of the same day, the three CEOs convened with the South Korean president at the Yongsan presidential office to discuss cooperation on the government's initiative to usher in a new era of AI. "The vast scale of this initiative begs us to consider relaxing regulations on the separation of industrial and financial capital when securing funding, as long as safeguards are in place to prevent possible harm that comes with monopolization," Lee stated. Altman said the ChatGPT maker was "excited" to work with Samsung Electronics and SK Hynix, calling them "wonderful partners." OpenAI estimates that 900,000 DRAM wafers, a key component of the AI chips for this project, will be needed per month. The Ministry of Science and ICT also signed a memorandum of understanding with OpenAI, pledging to join forces to foster balanced regional development in Korea's AI ecosystem, ease the public sector's transition into using AI, and foster AI talent. OpenAI will also aid South Korean companies in participating in global projects that it is developing with SoftBank and Oracle, such as the Stargate project. Kim Yong-beom, the policy chief for the presidential office, commented during a briefing, "OpenAI sympathized deeply with the South Korean government's policies for a balanced regional development, announcing plans to build large-scale data centers in South Jeolla Province and Pohang." SK will oversee the operation of the data center in South Jeolla Province, while Samsung will one in Pohang will be overseen by Samsung. By Kwon Hyo-jung, staff reporter; Shin Hyeong-cheol, staff reporter
[23]
Chip stocks rise as OpenAI's Stargate project fuels AI memory demand hype By Investing.com
Investing.com -- Chip stocks gained ground on Thursday following reports that South Korea's largest companies signed initial agreements to supply chips to OpenAI's Stargate project, boosting optimism for artificial intelligence memory demand. Micron (NASDAQ:MU) rose 1%, Advanced Micro Devices (NASDAQ:AMD) gained 3%, NVIDIA (NASDAQ:NVDA) added 1%, SanDisk (NASDAQ:SNDK) jumped 4.6%, Lam Research (NASDAQ:LRCX) increased 2%, Broadcom (NASDAQ:AVGO) climbed 3%, and Western Digital (NASDAQ:WDC) surged 4%. The sector-wide rally came after OpenAI's Sam Altman signed letters of intent with Samsung Electronics and SK Hynix to enlist them in his data center construction effort. According to the companies, OpenAI could need as many as 900,000 wafers per month as the Stargate project expands. This projected demand is more than double the current global capacity for high-bandwidth memory (HBM), highlighting the massive scale of the Stargate initiative and accelerating global AI development. However, some analysts expressed skepticism about the demand projections. KC Rajkumar of LYNX Equity Strategies said, "We would love nothing more than our favorite names such as MU, LRCX and SNDK climb higher, but for the right reasons. The 900K estimate coming from the two memory suppliers looks like a typo to us. Even if a zero were to be removed, a 90k wpm projection still would look dubious." The OpenAI-led initiative is part of a global push to build data centers for next-generation AI tools, an effort expected to cost trillions of dollars and require substantial amounts of chips, servers, cooling systems, and electricity.
[24]
Samsung, SK Hynix shares soar on OpenAI Stargate supply deal By Investing.com
Investing.com-- Shares of Samsung Electronics Co Ltd (KS:005930) and SK Hynix Inc (KS:000660) rose sharply on Thursday after the two South Korean chipmakers signed preliminary agreements to supply memory chips for OpenAI data centers under the Stargate program. Gains in the two drove South Korea's KOSPI index to a record high. The index jumped nearly 2% to a peak of 3,528.84 points. SK Hynix soared 7.6% to 386,500 won in morning trade, while Samsung jumped 3.7% to 89,200 won. In addition to the chips for the Stargate project, OpenAI will also work with the two chipmakers to build two data centers in South Korea. The agreements were announced during a meeting between OpenAI CEO Sam Altman and South Korean President Lee Jae Myung, which was also attended by the chairmen of Samsung and SK Hynix. The two are among the largest producers of memory chips in the world, and have become key suppliers for the artificial intelligence industry for high-bandwith memory (HBM) chips. HBM is a crucial component of the cutting-edge processors used to run AI programs. South Korean officials said OpenAI was seeking to order 900,000 semiconductor wafers in 2029, and planned to jointly build two data centers in the country with an initial capacity of 20 megawatts. OpenAI's Stargate project is a $500 billion plan to build more AI infrastructure in the United States. The plan was announced earlier this year, and will involve a host of major tech companies, including NVIDIA Corporation (NASDAQ:NVDA), Japan's SoftBank Group Corp. (TYO:9984), Microsoft Corporation (NASDAQ:MSFT), and Oracle Corporation (NYSE:ORCL). But the project appeared to be making little headway in its ambitious plans. Reports in August also suggested that it had been delayed due to longer-than-expected negotiations with other parties. Samsung's affiliate Samsung SDS Co Ltd (KS:018260) also signed a deal with OpenAI to build and operate data centers under Stargate. Shipbuilder Samsung Heavy Industries (KS:010140) and construction unit Samsung C&T Corp (KS:028260) will also work with OpenAI to build offshore, floating data centers.
[25]
Samsung, SK Hynix Rally on Partnership With OpenAI for Stargate Project
Shares of Samsung Electronics and SK Hynix surged to multiyear highs after the South Korean memory-chip makers struck initial agreements with ChatGPT maker OpenAI as part of a global artificial-intelligence push. OpenAI Chief Executive Sam Altman signed letters of intent with Samsung Group affiliates and SK Hynix on Wednesday to team up to establish the global AI infrastructure, including next-generation data centers, under his company-led Stargate initiative. No deal value was disclosed. The partnership includes potential megadeals for the South Korean companies to help OpenAI secure a massive volume of powerful AI chips, including high-bandwidth-memory products, and build OpenAI's Stargate data centers, according to statements from Samsung and SK Hynix. On South Korea's main stock market on Thursday, shares of HBM leader SK Hynix advanced as much as 12% to 404,500 won, equivalent to $288.35, while Samsung Electronics climbed as much as 5.0% to 90,300 won. The rally boosted their combined market value by more than $30 billion, pushing the benchmark Kospi 3% higher to a record. SK Hynix said Wednesday that it will be a key HBM supplier for OpenAI's Stargate project and boost its AI-chip production capacity to meet future demand for an estimated 900,000 semiconductor wafers a month. The companies will also collaborate to build AI data centers in South Korea's southwest, SK Hynix said. Samsung, which is also partnering with OpenAI, on Wednesday said its construction and trading affiliate, Samsung C&T, and shipbuilding affiliate, Samsung Heavy Industries, will jointly develop floating data centers. Its information-technology services subsidiary, Samsung SDS, will help design and operate Stargate AI data centers. Samsung Electronics, which has lagged behind SK Hynix in supplying advanced HBM3E products, is stepping up efforts to catch up in supplying next-generation HBM4 products, currently under development for major AI-chip clients. The two Korean chip makers dominate the global HBM market with a combined market share of around 80%, according to estimates by market-research firm Counterpoint Research. SK Hynix is the market leader with a 62% share as of the second quarter, followed by Micron Technology with 21% and Samsung with 17%. OpenAI and other major global equity funders in Stargate earlier committed an initial $100 billion, with plans to invest up to $500 billion over the next four years. News Corp, owner of Dow Jones Newswires and The Wall Street Journal, has a content-licensing partnership with OpenAI.
[26]
Samsung, SK Hynix market value jumps $37 billion after OpenAI chip deal
SEOUL (Reuters) -Shares of South Korea's Samsung Electronics and SK Hynix rallied on Thursday after the chip makers signed a deal to supply memory chips for OpenAI's data centres, boosting their combined market capitalisation by $37 billion. Samsung Electronics climbed more than 4% to its firmest since January 2021 and SK Hynix jumped more than 12% to an all-time high, propelling the benchmark KOSPI index more than 3% to a record. OpenAI, participating in U.S. President Donald Trump's $500 billion Stargate artificial intelligence project, agreed on Wednesday to collaborate with the two South Korean chipmakers on building two data centres, a Korean-style Stargate. "There have been worries about high bandwidth memory prices falling next year on intensifying competition, but such worries will be easily resolved by the strategic partnership," Jeff Kim, an analyst at KB Securities, said in a note, expecting a surge in demand from the project. "Since Stargate is a key project led by President Trump, there also is a possibility the partnership will have a positive impact on South Korea's trade negotiations with the U.S.," Kim said. The global AI boom has been driving strong demand for semiconductors, which led South Korea's exports to rise in September at the fastest pace in 14 months despite a hit from U.S. tariffs, blowing past market expectations. South Korea hopes to formalise by late October a preliminary trade deal reached with Trump in July, lowering U.S. tariffs on South Korean imports in return for a $350 billion investment in the U.S. However, follow-up negotiations have stalled due to Seoul's concerns over the foreign exchange implications and structure of the investment package. Samsung Electronics' affiliates Samsung SDI, Samsung C&T and Samsung SDS also rose sharply in early Asia trade on partnerships with the U.S. artificial intelligence firm. (Reporting by Jihoon Lee; Editing by Muralikumar Anantharaman and Jacqueline Wong)
Share
Share
Copy Link
OpenAI partners with Samsung and SK Hynix to source up to 900,000 DRAM wafers monthly for its Stargate project, potentially consuming 40% of global DRAM output. The deal includes plans for AI data centers in South Korea and explores innovative solutions like floating data centers.
OpenAI, the company behind ChatGPT, has taken a significant step forward in its race to build compute capacity for AI development. The company has announced strategic partnerships with two of the world's largest memory chip manufacturers, Samsung Electronics and SK Hynix, to supply DRAM wafers for its ambitious Stargate AI infrastructure project
1
.Source: The Korea Times
The scale of this agreement is staggering. Samsung and SK Hynix have pledged to scale their manufacturing to produce up to 900,000 high-bandwidth memory DRAM wafers per month for use in Stargate and AI data centers
1
. This volume represents a significant portion of global DRAM output, with estimates suggesting it could consume nearly 40% of total DRAM production3
.Source: euronews
Stargate is a massive infrastructure project spearheaded by OpenAI, Oracle, and SoftBank. The initiative aims to invest $500 billion in building data centers dedicated to AI development in the United States
1
. This latest agreement with Samsung and SK Hynix is part of OpenAI's broader strategy to secure the necessary components and partnerships for this ambitious project.In addition to the memory supply agreement, OpenAI is exploring opportunities to build AI data centers in South Korea. The company is working with the Korean Ministry of Science and ICT to identify suitable locations outside Seoul
1
. OpenAI has also struck a separate deal with SK Telecom to build an AI data center in the country2
.Source: The Hankyoreh
Related Stories
As part of the collaboration, Samsung and OpenAI are exploring innovative solutions for data center design and operation. Samsung C&T and Samsung Heavy Industries will work with OpenAI to develop floating data centers, which could potentially improve cooling efficiency and reduce carbon emissions
3
.The announcement of these partnerships has had a significant impact on the stock market. Samsung shares reached their highest level since January 2021, while SK Hynix stock surged almost 10 percent to levels not seen since 2000
4
. This reflects the market's confidence in the potential of AI infrastructure investments.As OpenAI continues to secure partnerships and resources for its Stargate project, the company is positioning itself at the forefront of AI development. The scale of these agreements underscores the massive computational requirements of advanced AI systems and highlights the critical role that memory manufacturers will play in shaping the future of artificial intelligence.
Summarized by
Navi
[3]
[4]
[5]
22 Jul 2025•Business and Economy
22 Nov 2024•Technology
04 Feb 2025•Business and Economy
1
Business and Economy
2
Business and Economy
3
Technology