CNBC reported that Nvidia said it has secured AI memory supply from South Korea's SK Hynix, as the chipmaker tries to lock in a key component for its advanced processors and systems amid a global memory shortage.

The agreement, announced late Friday in San Francisco, could be worth $500 billion over a number of years and includes construction of large-scale data centers expected to come online in 2027. SK Hynix affiliate SK Telecom will build a cloud business using Nvidia's Vera Rubin systems, targeting enough capacity to require 2 gigawatts of power, indicating a massive buildout with hundreds of thousands of GPUs.

Nvidia is aggressively securing supply of high-bandwidth memory, essential for its GPUs and AI systems. SK Hynix is the leader in HBM production, according to analysts.

Nvidia enterprise vice president Raj Mirpuri said the expansion will include a co-develop opportunity on next-generation SK Hynix AI memory, helping secure a stable supply of HBM.

The deal signals that massive AI infrastructure buildouts are moving beyond a handful of hyperscalers, with foreign governments and conglomerates getting involved. The announcement came at an AI summit with South Korean officials including President Lee Jae Myung.

Nvidia also said it would invest $1 billion into Naver, a Korean cloud company building data centers around its GPUs, providing 200 megawatts of capacity for customers in South Korea and globally.

SK Hynix, South Korea's second most valuable company, listed on the Nasdaq earlier this month to finance infrastructure developments.