OpenAI Partners With Samsung, SK Hynix to Build AI Data Centers in Korea

— by wiobs

OpenAI joins forces with Samsung and SK Hynix to build AI data centers in South Korea, boosting Seoul’s ambition to become Asia’s leading AI hub.

South Korea Emerges as OpenAI’s Next AI Frontier

OpenAI is expanding its global footprint by teaming up with South Korea’s tech giants Samsung Electronics and SK Hynix to power its ambitious Stargate project. The collaboration includes building two advanced data centers branded as a “Korean-style Stargate” that align with Seoul’s drive to position itself as Asia’s premier artificial intelligence hub.
The partnership highlights South Korea’s unique role in the global AI race, supported by its massive base of paying ChatGPT users second only to the United States.

Context: Stargate and the Global AI Push

Launched in January by former U.S. President Donald Trump, the $500 billion Stargate initiative is designed to safeguard American leadership in artificial intelligence. OpenAI leads the effort alongside partners such as SoftBank Group and Oracle, while Nvidia recently pledged up to $100 billion in chip investments to bolster AI infrastructure.
One of Stargate’s key pillars is ensuring a steady supply of advanced semiconductors vital for training large AI models. By joining forces with Samsung and SK Hynix, OpenAI is tapping into two companies that already control 70% of the global DRAM market and nearly 80% of the high-bandwidth memory (HBM) market.

Major Announcements From Seoul

The collaboration was unveiled after OpenAI CEO Sam Altman met with South Korean President Lee Jae Myung, alongside the chairmen of Samsung and SK Hynix, at the presidential office in Seoul.
According to presidential adviser Kim Yong-beom, OpenAI is preparing to order nearly 900,000 semiconductor wafers by 2029, worth an estimated 100 trillion won ($70 billion). Plans are underway to set up joint ventures with Samsung and SK Hynix to establish two domestic data centers with an initial 20-megawatt capacity.
Kim emphasized the significance of South Korea’s role, stating: “The Stargate project would be impossible without memory chips from Samsung and SK Hynix.” He also noted that Seoul may consider financing the project to strengthen its position in the global AI supply chain.

Sam Altman’s Vision for Korea

Speaking after the meeting, Altman praised South Korea’s industrial strength:
“We’re excited to build Stargate Korea with Samsung and SK Hynix to support the sovereign AI needs of Korea. The country’s industrial base is unlike anywhere else in the world and is critical for the future of AI.”
Altman underscored the partnership’s focus on advanced memory chips, which form the backbone of modern AI systems.

Expanding AI Ecosystem in Korea

The Stargate partnership is part of a broader AI investment wave in South Korea:
  • Google is reportedly in discussions with local firms to pursue AI collaborations.

  • SK Group announced a 7 trillion won investment in June, including a $4 billion commitment from Amazon Web Services to build a major data center.

  • Samsung SDS, a Samsung affiliate, signed an agreement with OpenAI to develop and manage AI data centers under Stargate.

  • Samsung Heavy Industries and Samsung C&T are exploring floating offshore data centers, designed to cut cooling costs and reduce carbon emissions.

Why South Korea?

South Korea’s dominance in memory chips is unmatched. Its leadership in DRAM and HBM technologies the latter stacking chips vertically to process vast amounts of data efficiently makes it a natural partner for AI projects that demand both performance and energy efficiency.
By securing early participation in Stargate, Korean firms gain a strategic foothold in the world’s largest AI infrastructure project, with opportunities to drive innovation in cloud computing, chip design, and energy-efficient data management.

Risks and Challenges

Despite the enthusiasm, concerns remain about the rapid pace of investment in AI infrastructure. Analysts warn of a potential AI bubble, where excessive spending outpaces market demand. The Stargate project itself has faced delays due to extended negotiations and site selection hurdles.
Nevertheless, South Korea’s government views the collaboration as a growth engine for its chip sector, reinforcing its global competitiveness in the face of intensifying AI demand.

Looking Ahead

As OpenAI deepens its presence in South Korea with a Seoul office already operational the country is set to become a cornerstone of the global AI ecosystem. The Stargate partnership not only strengthens U.S.-Korea tech ties but also signals a new era where semiconductors, sovereignty, and AI leadership intersect.
For Samsung and SK Hynix, the alliance marks more than a business deal it is a chance to shape the future infrastructure of artificial intelligence worldwide.

 

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