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Samsung and SK Hynix to Supply Chips for OpenAI’s Stargate Project
At Squaredtech, we analyze the biggest moves shaping artificial intelligence, and one of the most important stories today is the growing partnership between OpenAI and South Korea’s leading semiconductor companies. Samsung Electronics and SK Hynix have signed letters of intent to supply advanced memory chips to OpenAI’s massive Stargate project. This agreement highlights the global race for AI infrastructure, the economic role of South Korea in that race, and the extraordinary demand OpenAI faces as it builds the largest AI data ecosystem ever attempted.
OpenAI is at the forefront of AI innovation, driving advancements that shape the future.
As part of this collaboration, OpenAI’s influence in the AI sector is set to grow significantly.
This partnership is crucial as it navigates the complexities of the AI landscape.
This partnership is crucial as it navigates the complexities of the AI landscape, showcasing a commitment to innovation.
The collaboration is expected to significantly bolster capabilities in AI development.
This further solidifies the role in shaping the global AI landscape.
The announcements were made in Seoul after the CEO met South Korean President Lee Jae Myung alongside the chairmen of Samsung and SK Hynix. The discussions went far beyond chip supply, laying the foundation for data center construction, joint ventures, and broader AI cooperation. At Squaredtech, we see this as a critical step not just for OpenAI, but for the future positioning of South Korea as Asia’s leading AI hub.
Read More About Our Article of Samsung Wins $16.5B Tesla Chip Deal, Threatens TSMC’s Lead in AI Race Published on July 29th, 2025 SquaredTech
Why Samsung and SK Hynix Matter for OpenAI’s Stargate
Samsung and SK Hynix dominate the global memory chip industry. Together they control about 70 percent of the Dynamic Random Access Memory (DRAM) market and nearly 80 percent of the High Bandwidth Memory (HBM) market. These chips are central to artificial intelligence training and inference.
Ultimately, this partnership strengthens the role in the global AI ecosystem.
HBM technology is especially vital. Introduced in 2013, it stacks memory vertically to save space, cut power consumption, and handle the immense data workloads generated by large language models like ChatGPT. Without efficient HBM supply, AI systems cannot scale at the pace demanded by OpenAI. Analysts estimate that the 900,000 wafers OpenAI seeks to order in 2029 could exceed 100 trillion won, or roughly 70 billion dollars, depending on memory market cycles.
Key pointers:
- Samsung and SK Hynix will secure long-term leadership in global AI chip supply.
- HBM technology is now a bottleneck in AI scaling, making Korean chips essential.
- The estimated $70 billion value of wafer demand highlights unprecedented AI hardware growth.
Building Stargate Data Centers in South Korea
The collaboration with Samsung and SK Hynix extends beyond chip supply. Plans are underway to build two large-scale data centers in South Korea as part of a “Korean-style Stargate.” The initial capacity will be 20 megawatts, with expansion anticipated as AI demand grows.
These data centers will be structured as joint ventures between the two Korean firms. The presidential office in Seoul also suggested that South Korea is prepared to participate in financing the Stargate project if required. This gives South Korean companies an early foothold in what many analysts describe as the world’s largest AI infrastructure initiative.
These developments highlight strategic positioning in the market.
He emphasized South Korea’s unique position during his meeting with President Lee. He stated that Korea’s industrial base is unmatched globally and is critical for AI development. He praised the collaboration with Samsung and SK Hynix, noting that memory supply will serve the world’s rising demand for AI.
This collaboration is essential for meeting the rising global demand.
The partnership also aligns with South Korea’s ambition to become Asia’s central AI hub. The country already has the second-largest number of paying ChatGPT subscribers after the United States, reflecting the scale of local demand for AI services. OpenAI has responded by opening its first Seoul office earlier this year, deepening its presence in the region.
Key pointers:
- Two data centers with 20MW capacity will kickstart Stargate Korea.
- South Korea is positioning itself as Asia’s top AI hub with government support.
- Local demand for ChatGPT services has become a driving factor for infrastructure.
Global Competition Around Stargate
The Stargate project has global political and economic dimensions. It was announced in January by U.S. President Donald Trump, who charged OpenAI and partners like SoftBank and Oracle with ensuring U.S. leadership in artificial intelligence. Expanding chip availability is a cornerstone of this plan. Nvidia, which dominates the AI GPU market, announced last week that it would invest up to 100 billion dollars in OpenAI while also supplying chips for Stargate.
The significance of this initiative is not limited to American companies. The South Korean government sees an opportunity to accelerate its domestic chip industry by tying it to global AI infrastructure. For Samsung and SK Hynix, this is not just another supply deal. It positions them as critical partners in the largest AI project in history, securing long-term growth potential.
Investors, however, have voiced concerns about the speed of these developments. Some analysts warn of a possible AI bubble if infrastructure builds too quickly. The Stargate project has already faced delays due to lengthy negotiations and site selection issues. Despite these concerns, South Korea’s government and corporate leaders are betting on long-term gains.
Key pointers:
- Stargate is as much about geopolitics as it is about technology.
- Nvidia, Oracle, and SoftBank are also deeply tied to Stargate expansion.
- Investor caution signals risks of overbuilding in the AI infrastructure market.
Such partnerships are crucial for OpenAI as it navigates through intense global competition.
Expanding Beyond Chips: New Ventures in AI Infrastructure
Samsung Electronics is extending its role beyond semiconductor supply. Its affiliate Samsung SDS has signed a separate partnership with OpenAI to develop and operate AI data centers under the Stargate project. This includes enterprise AI services that could integrate with both domestic and global business networks.
Such partnerships are crucial as it navigates through intense global competition, particularly in relation to the growing demand for innovative solutions.
Other Samsung units are also entering the project. Samsung Heavy Industries and Samsung C&T are working with OpenAI on the development of floating offshore data centers. These facilities are designed to reduce cooling costs and cut carbon emissions, an increasingly important factor as AI infrastructure expands and environmental concerns grow.
This multi-branch involvement shows that Samsung is positioning itself as a central partner not just in chipmaking but across the entire AI infrastructure ecosystem.
Key pointers:
- Samsung SDS will help design and operate Stargate data centers.
- Offshore floating data centers aim to cut cooling costs and emissions.
- Samsung’s involvement goes beyond chips, integrating infrastructure and services.
What This Means for the Future of AI
From Squaredtech’s perspective, the deal between Samsung and SK Hynix illustrates how AI growth is driving new global alliances. The Stargate project is more than an investment plan. It is a long-term restructuring of how data, chips, and infrastructure are developed and distributed.
From Squaredtech’s perspective, the deal between OpenAI, Samsung, and SK Hynix illustrates how AI growth is driving new global alliances. The Stargate project is more than an investment plan. It is a long-term restructuring of how data, chips, and infrastructure are developed and distributed.
For South Korea, it means stronger influence in AI supply chains. For OpenAI, it means securing reliable access to memory chips and data center support at a time of explosive demand. For Samsung and SK Hynix, it means early positioning in the largest AI ecosystem ever attempted.
The path ahead is not without challenges. The sheer scale of ordering 900,000 wafers by 2029 requires extraordinary coordination. Building data centers, especially floating offshore facilities, demands technical innovation and political backing. At the same time, competitors such as Google and Amazon are deepening their own investments in South Korea, adding pressure to secure market leadership.
OpenAI’s initiatives are critical for the development of sustainable AI solutions.
Still, the significance is clear. The partnership puts Samsung and SK Hynix at the core of OpenAI’s future, while giving South Korea a powerful role in shaping global artificial intelligence infrastructure.
The collaboration presents opportunities for OpenAI to enhance its services significantly.
Conclusion
Squaredtech sees this development as one of the most pivotal AI stories of the year. By securing Samsung and SK Hynix as chip suppliers, OpenAI is not just meeting technical demand for Stargate. It is creating a new geopolitical and industrial balance in AI. The partnership integrates government ambition, corporate capability, and OpenAI’s global AI strategy into one of the most ambitious infrastructure projects ever announced.
As the Stargate project moves forward, all eyes will remain on South Korea, where chip supply, data centers, and AI services converge to redefine the future of artificial intelligence.
Final pointers:
- Stargate will test the limits of global semiconductor production.
- South Korea could become the backbone of OpenAI’s infrastructure strategy.
- Samsung and SK Hynix are cementing themselves as indispensable AI partners.
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