Shares of South Korean chipmakers Samsung Electronics (SSNLF) and SK Hynix surged on Thursday as the two companies partnered with artificial-intelligence (AI) frontrunner OpenAI (PC:OPAIQ) as part of the U.S. firm’s Stargate initiative. Notably, Samsung Electronics stock rose more than 4% and SK Hynix shares jumped 10%, driving a 2.7% gain in the benchmark KOSPI index. Notably, Samsung stock hit its highest level since January 2021, while SK Hynix stock ended the trading session at levels not seen since 2000.
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The announcement came as OpenAI CEO Sam Altman met with South Korean President Lee Jae Myung in Seoul, along with the top leaders of Samsung and SK Hynix.
Samsung, SK Hynix Strike Key Deal with OpenAI
Samsung, SK Hynix, and OpenAI announced new strategic partnerships as part of the ChatGPT maker’s Stargate initiative, a massive artificial intelligence platform that aims to expand infrastructure critical to AI development. OpenAI stated that these deals will focus on increasing the supply of advanced memory chips needed to support next-generation AI and expanding data center capacity in Korea.
The ChatGPT-maker said the two South Korean firms intend to scale up production of advanced memory chips, which are crucial for powering its AI models. Notably, the two companies are targeting 900,000 DRAM wafer starts per month at an accelerated capacity rollout that is critical for powering OpenAI’s advanced AI models.
OpenAI stated that it has also signed many other agreements to explore the development of next-generation AI data centers in South Korea, including a deal with the Korean Ministry of Science and ICT, telecommunications operator SK Telecom, and Samsung subsidiaries.
Interestingly, earlier this month, SK Hynix, a key supplier for chip giant Nvidia (NVDA), announced that it is set to mass-produce its next-generation high-bandwidth memory (HBM) chips, bolstering its position in the AI value chain.
Wall Street’s Take on Key AI Stocks
Given the ongoing AI boom, using the TipRanks’ AI Comparison Tool, let’s look at Wall Street’s ratings for some of the AI stocks.
