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| South Korean President Lee Jae Myung (R) meets with OpenAI CEO Sam Altman at the presidential office in Seoul, South Korea, on Wednesday. Altman secured a deal with Samsung and SK to buy chips. He also agreed to build data centers in Korea. Photo by Yonhap/EPA |
The multifaceted deal establishes two of the world's leading memory chip makers as critical suppliers for OpenAI's most ambitious infrastructure project and simultaneously lays the groundwork for new sovereign AI data centers on Korean soil. The agreements were finalized during a meeting that included South Korean President Lee Jae Myung at the presidential office in Seoul, underscoring the national significance of the collaboration.
Fueling the $500 Billion Stargate Project
At the core of the partnership is a commitment from Samsung and SK Hynix to supply specialized, high-performance AI memory chips for Project Stargate, a colossal $500 billion joint venture between OpenAI, Oracle, and SoftBank to build out next-generation AI infrastructure in the United States.
OpenAI estimates that the massive computing demands of Stargate will require up to 900,000 high-performance DRAM chips every month, a figure that includes a vast quantity of cutting-edge high-bandwidth memory (HBM) semiconductors. Both Korean companies announced they are planning to retool their production lines to meet the staggering scale of Stargate's needs.
"AI cannot grow without semiconductors, and because Samsung and SK play a critical role in the global semiconductor market, this three-way partnership is a win-win that will lead the global market," said President Lee. "I expect the cooperation with OpenAI will expand domestic exports and create job opportunities."
Samsung Chairman Lee Jae-yong added that the partnership will help South Korea "become the hub of the global AI model and a pioneer for a new future. Samsung will continue to contribute to Korea's national AI vision, not only by leading in securing a stable semiconductor supply but also by fostering a robust AI ecosystem that includes small businesses and ventures."
Building 'Stargate Korea' for Sovereign AI Needs
Beyond the hardware supply, Altman and President Lee reached an agreement to establish two new state-of-the-art AI data centers in South Korea. The move directly addresses the country's rapidly growing demand for AI, which has outstripped its domestic computing capacity. The popularity of ChatGPT has exploded in South Korea, reaching over 20 million monthly active users in August.
"We are excited to build Stargate Korea and data centers with our great partners to support Korea's sovereign AI needs," Altman stated.
Part of a Nationwide Data Center Gold Rush
The OpenAI deal is the latest and most prominent in a series of massive investments aimed at transforming South Korea into a regional AI powerhouse.
In June, SK Group signed a deal with Amazon Web Services (AWS) to build a $5.1 billion AI Data Center in Ulsan, located about 400 km south of Seoul. The facility is planned to have a 41-megawatt capacity by 2027 and expand to 103 megawatts by 2029.
Shortly after, IGIS Asset Management, Korea's top real estate investment firm, announced it would invest $1.3 billion to construct two AI data centers in Busan. Construction on the 40- and 80-megawatt facilities is set to begin in late 2026, with a target operational date of late 2029.
This wave of investment underscores a clear national strategy to build the foundational infrastructure necessary to not only consume but also innovate and lead in the age of artificial intelligence.