Nvidia Corp. and South Korean memory chipmaker SK Hynix announced plans to detail an expanded cooperation agreement as Nvidia CEO Jensen Huang warned that semiconductor shortages will persist due to accelerating demand for artificial intelligence infrastructure.

The partnership comes as the AI boom continues to strain global chip supply chains, with companies racing to secure adequate semiconductor capacity for data centers and AI applications. Huang's comments signal that the industry should prepare for extended periods of tight supply despite ongoing efforts to increase production.

The cooperation between Nvidia and SK Hynix is expected to focus on advanced memory solutions needed for AI processing, though specific details of the partnership have not yet been disclosed. SK Hynix is a major supplier of high-bandwidth memory chips that are crucial for AI accelerators and graphics processing units.

The semiconductor shortage has become a persistent challenge across multiple industries, from automotive to consumer electronics. The surge in AI development and deployment has added new pressure to an already strained supply chain, with companies competing for limited manufacturing capacity at advanced chip fabrication facilities.

Nvidia's warning about prolonged shortages reflects broader industry concerns about meeting the rapidly growing demand for AI-capable hardware. The company has been at the center of the AI infrastructure buildout, with its graphics processors becoming essential components for training and running large language models and other AI applications.