Nvidia Commits $279 Billion to Secure AI Memory Supply

Nvidia has committed $279 billion to supply and capacity agreements over the next few years to secure critical memory components for its AI infrastructure. CFO Colette Kress announced the figure during the company's second-quarter earnings report, marking a substantial increase from the $119 billion commitment reported three months earlier.

The spending aims to eliminate bottlenecks in AI build-outs by reserving high bandwidth memory (HBM) and server DRAM, ensuring the shipment of Blackwell systems and Vera CPUs. The budget is distributed as $92 billion for the remainder of fiscal 2027, $87 billion for fiscal 2028, and $88 billion for fiscal 2029.

Nvidia expects to concentrate these investments with memory producers SK Hynix and Micron Technology. While the agreements guarantee the necessary supply for growth, the company anticipates that rising memory costs will cause its gross margin to dip into the low 70% range by the end of fiscal 2027.