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Nvidia locks in $500 billion AI memory deal with SK Hynix

Published July 26, 2026 at 12:03 PM UTC

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Nvidia has secured a long-term supply of high-bandwidth memory (HBM) from SK Hynix in a deal valued at roughly $500 billion. The agreement ensures Nvidia will have the advanced memory chips needed to build its AI accelerators for years to come. HBM is a critical component for AI training and inference because it allows rapid data transfer between memory and processors. The deal comes as demand for AI chips surges globally, and memory suppliers have struggled to keep up. SK Hynix has been the dominant producer of HBM, with Nvidia as its largest customer. By locking in supply, Nvidia aims to avoid the bottlenecks that have plagued other parts of the tech supply chain. The financial terms, reported by CNBC, are among the largest ever in the semiconductor industry. The agreement covers multiple generations of HBM, giving both companies planning certainty. For SK Hynix, the deal provides a multiyear revenue stream and justifies additional investment in production capacity. The partnership underscores how tightly AI hardware makers depend on specialized memory manufacturers. While Nvidia designs the chips, it relies on foundries and memory partners to build them. This deal reduces one of those risks. Still, analysts caution that the enormous commitment could backfire if AI demand growth slows or if new memory technologies emerge. The companies have not disclosed the exact timeline or volume of shipments.