Microsoft taps four Korean tech giants for a large AI partnership

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Microsoft’s Founder Bill Gates and CEO Satya Nadella will reportedly meet with leaders of South Korea’s four technology companies on May 14 at the MS CEO Summit 2024. The goal is to strengthen their partnerships regarding the AI products and tools that make the development possible.

The leaders Microsoft is planning to get into a discussion with are – Kyung Kye-Hyun, the head of Samsung Electronics Device Solutions Division, Kwak Noh-Jung, chief executive of SK Hynix, Cho Joo-wan, CEO of LG Electronics, and Ryu Young-sang, CEO of SK Telecom. It will be a closed-door meeting between the CEOs. This is unusual for Microsoft to invite four Korean beg tech CEOs and find opportunities for partnerships. It shows how serious the company is when it comes to strengthening its AI capabilities.

Microsoft could source related chips and also offer its services to the companies

According to analysts, a partnership between the companies could be mutually beneficial. Speaking of Samsung, they are already working with companies like Nvidia on the next generation of AI chips.

According to sources, the partnership with Samsung and SK Hynix will likely focus on supplying high bandwidth memory chips, high-performance solid-state drives for servers, and compute express link devices to Microsoft. These are among some of the key equipment in the development of AI products. For those unfamiliar, Samsung and SK Hynix are the world’s two largest memory chipmakers.

Aside from sourcing chips related to the development of AI, Microsoft may also engage in discussions with Samsung and LG to integrate its AI services into their products. For reference, Samsung’s Galaxy AI, which has reached millions of devices at this point, is backed by Google’s Gemini Model. For it may result in new features in the future. Notably, Microsoft has been a customer of Samsung and LG regarding their smartphones and TVs respectively.

Samsung is already known for working on two AI chips

Kyung, chief executive of Samsung DS division confirmed last month that the company is working on two AI chips named Mach-1 and Mach-2. KED Global notes that the mass production of a prototype is scheduled for the end of this year. The company has already engaged in a $752 million deal with Naver Corp regarding the Mack-1 chip.

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