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South Korea's Memory Chip Sector Booms as SK Hynix, Samsung Join OpenAI's 'Stargate'

OpenAI's 'Stargate' project fuels demand for South Korean memory chips. The project's strategic implications could reshape the global AI landscape.

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In the picture we can see three boys standing near the desk on it, we can see two computer systems...
In the picture we can see three boys standing near the desk on it, we can see two computer systems towards them and one boy is talking into the microphone and they are in ID cards with red tags to it and behind them we can see a wall with an advertisement board and written on it as Russia imagine 2013.

South Korea's Memory Chip Sector Booms as SK Hynix, Samsung Join OpenAI's 'Stargate'

South Korea's memory chip sector is set for a significant boost, with SK Hynix and Samsung securing roles in OpenAI's global AI infrastructure project, 'Stargate'. This project carries strategic implications for South Korea, positioning it as a regional technology hub beyond hardware manufacturing.

OpenAI's 'Stargate' project, aiming to create a vast network of AI supercomputers, will require a substantial amount of high-bandwidth memory (HBM). This is crucial for AI due to its ability to move massive amounts of data at ultra-fast speeds. Both SK Hynix and Samsung, leaders in the Korean memory chip sector, will benefit from increased demand for HBM, with SK Hynix reinforcing its role as the leading supplier of HBM3 chips and Samsung expanding into the next generation of HBM4.

The project is expected to fuel an unprecedented wave of capital spending across the artificial intelligence supply chain, valued at up to $500 billion (€425.3bn). OpenAI has commissioned NVIDIA and its AI infrastructure partner Nscale to deliver ultra-high-speed storage and NVIDIA Blackwell Ultra GPUs for the project, with deployments in the U.S., Norway, Portugal, and the U.K. Oracle Cloud Infrastructure also plays a key role in powering the Stargate data centers in Texas.

The 'Stargate' project not only strengthens South Korea's position in the global AI landscape but also diversifies OpenAI's ties away from China-sensitive ones, aligning with Washington's efforts to secure critical facilities in friendly countries. With the project requiring hundreds of thousands of HBM wafers or stacks every month, the Korean memory chip sector's scale and political alignment make it an ideal partner for this global endeavor.

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