Samsung is about to land massive AI memory deals with Google and Microsoft
Samsung is pushing long-term AI memory deals with Google and Microsoft. The structure is apparently closer to a purchase guarantee than a handshake.
Dr. Young Hyun Jun told shareholders theyβre looking at three to five-year commitments, and according to one industry source, Microsoft alone could be on the hook for over $10 billion in upfront payments.
If they donβt take the volumes they promised, Samsung deducts from that deposit, as per the EBN report (via Jukan). Prices still float with spot rates, but the volumes are locked, and itβs a flip from where things stood in January.
Just a couple of months back, Samsung and SK Hynix were trying to jack server DRAM prices up 60 to 70 percent, and both Microsoft and Google told them to get lost. Wouldnβt lock into anything beyond a quarter.
Samsung apparently expects the memory shortages to end by 2028, which means theyβre trying to lock in pricing and volume now. Jun said this kind of supply stability helps both sides, which is technically true.
Earlier, Samsung Electronics Vice Chairman Jun Young-hyun stated at a shareholdersβ meeting, βIt is very important for the semiconductor division to minimize mid- to long-term uncertainties and maintain a healthy balance of memory supply and demand. Through multi-year contracts, long-term supply can enhance business stability and visibility for both customers and us.β
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