Naver, the South Korean tech company, has recently signed a deal worth 1 trillion won with Samsung to reduce its dependency on Nvidia’s expensive AI chips. Samsung will supply Naver with its more affordable Mach-1 chips by the end of 2024. The Mach-1 chip is an AI accelerator that combines Samsung’s processors and low-power DRAM chips to improve efficiency.
The announcement of the Mach-1 chip was made during Samsung’s shareholders’ meeting, where it was mentioned that the chip design had passed technological validation. The exact volume and pricing of the chips are still being discussed, but reports suggest that Samsung plans to sell them for around $3,756 each. Naver intends to use the Mach-1 chips to power servers for its AI map service, Naver Place.
Samsung is also in talks with other tech companies like Microsoft and Meta Platforms to reduce their reliance on Nvidia’s AI hardware. With this deal, Samsung aims to compete with its South Korean rival SK Hynix, which is a dominant player in the advanced HBM segment. Samsung has been investing heavily in HBM technology and recently announced the industry’s first 12-stack HBM3E 12H DRAM. This new technology is expected to outperform existing competitors and begin shipping in the second quarter of this year.
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