Nvidia and SK Hynix team up: this could be huge

Okay, so two of the biggest companies in the AI world have decided to work even more closely together. That usually means something big is coming.

What's going on: Nvidia and South Korea's SK Hynix have announced a multi-year partnership to build the next generation of AI hardware.

Now when we say next generation, it means if Nvidia is the company designing the brains behind AI, then SK Hynix is helping build the memory that allows those brains to think faster.

This memory, called High Bandwidth Memory (HBM), has become one of the hottest products in technology because every AI model, from ChatGPT to Gemini to Claude, needs enormous amounts of it.

The big plan: the two companies will jointly develop memory for Nvidia's future AI supercomputers, AI PCs, and even robots. They will also use AI to design better chips and improve semiconductor manufacturing itself. 

Why this is such a big deal: the world is currently facing a race to build what Nvidia CEO Jensen Huang calls "AI factories", massive data centres filled with AI chips.

The challenge is that advanced memory chips can take years to develop and billions of dollars to manufacture. By locking in a long-term partnership, Nvidia is ensuring it has enough supply to keep up with exploding demand.