OpenAI has forged a strategic partnership with South Korean semiconductor giants Samsung Electronics and SK Hynix to secure a massive supply of advanced memory chips for its ambitious Stargate AI infrastructure project. Announced on October 1, 2025, the agreements—signed as letters of intent—aim to produce up to 900,000 DRAM wafers per month by 2029, representing over 40% of projected global DRAM capacity and valued at potentially $70 billion. This deal, revealed after a high-level meeting in Seoul between OpenAI CEO Sam Altman, South Korean President Lee Jae-myung, Samsung Executive Chairman Jay Y. Lee, and SK Chairman Chey Tae-won, also paves the way for AI data centers in Korea, bolstering the nation’s bid to become a top-three global AI power.
For AI investors, supply chain analysts, and tech executives in the $500 billion semiconductor market, this collaboration underscores OpenAI’s aggressive scaling amid surging demand for high-bandwidth memory (HBM) to power next-gen models like GPT-5. Samsung and SK Hynix shares rocketed 3.5% and 10% respectively on the news, adding $37 billion to their combined market cap and propelling the KOSPI to a record high. As Stargate—OpenAI’s $500 billion initiative with Oracle and SoftBank—targets U.S.-based superclusters, Korea’s role could extend to joint ventures and additional sites. Let’s break down the deal, technical details, and ripple effects.
Deal Overview: 900,000 Wafers/Month for Stargate’s AI Hunger
The partnerships focus on ramping up production of high-bandwidth DRAM and HBM chips essential for AI training and inference, with Samsung and SK Hynix committing to scale output to 900,000 wafers monthly—more than double current industry capacity for HBM. This addresses OpenAI’s voracious compute needs, where a single GPT-5 training run could require 100x GPT-4’s energy and memory footprint.
Key elements:
| Component | Details | Value/Scale |
|---|---|---|
| Chip Supply | Advanced DRAM/HBM wafers for AI data centers | 900,000/month by 2029; $70B potential |
| Data Center Builds | Joint ventures for Korean sites (20MW initial) | 2 facilities outside Seoul; MSIT collaboration |
| Broader Agreements | Samsung C&T, Heavy Industries, SDS for infra; SK Telecom for AI center | Explores financing; NVIDIA $100B investment tie-in |
| Timeline | Letters of intent signed Oct 1, 2025 | Production ramp 2026-2029 |
Altman praised Korea’s “industrial base like nowhere else,” noting the chips’ role in meeting “the whole world’s demand for AI.” SK’s Chey Tae-won called it a “landmark moment” for synergies across semiconductors, energy, and networks.
Technical Focus: HBM and DRAM for Next-Gen AI
Samsung and SK Hynix dominate HBM (80% market share), critical for GPUs like NVIDIA’s Blackwell powering Stargate. The deal targets high-bandwidth DRAM for data centers, with wafers (undiced silicon) enabling custom scaling. Analysts estimate 900,000 wafers could yield billions of chips, consuming 40% of 2025’s projected 2.25 million WSPM DRAM capacity.
This follows OpenAI’s September 2025 NVIDIA $100 billion deal for 10 GW compute, complementing Stargate’s U.S. focus (Abilene site live, five more planned). Korea’s sites—potentially 20 MW each—support regional growth, with MSIT exploring financing.
Market Impact: Shares Soar, Korea’s AI Ambitions Ignite
The announcement triggered a rally: Samsung hit a 4-year high (+3.5%), SK Hynix an all-time peak (+10%), adding $37 billion combined and lifting KOSPI 3% to record. KB Securities’ Jeff Kim noted it eases HBM price worries amid competition.
For investors, it’s bullish for semis: Samsung/SK supply 80% HBM to NVIDIA/Broadcom, OpenAI’s partners. Korea cements AI hub status, with $600 billion won Kakao data center and $5 billion Amazon-SK project. OpenAI secures supply amid U.S. curbs, supporting 250 GW by 2033.
Risks: Geopolitical tensions (U.S.-China chips war) and HBM oversupply could pressure prices, but Stargate’s scale mitigates.
Conclusion: OpenAI’s Korean Chip Lifeline – Powering Stargate’s Ambition
OpenAI’s deal with Samsung and SK Hynix for memory chips is a cornerstone for Stargate, locking in 900,000 wafers/month to fuel $500 billion AI data centers. As shares soar and Korea builds hubs, it secures supply for AGI dreams—watch for production ramps in 2026. Reuters
