NVIDIA splashes huge money on securing HBM3e memory for H200 and B100 AI GPUs

NVIDIA has placed advanced payments for next-gen HBM3e memory with SK hynix and Micron for its next-gen H200 'Hopper' and B100 'Blackwell' AI GPUs.

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NVIDIA is splashing down cash on next-gen HBM3e memory, where the AI GPU leader is securing enough stock of the new High-Bandwidth Memory for its upcoming Hopper H200 AI GPU and its next-gen Blackwell H200 AI GPU, which both arrive in 2024.

DRAM suppliers roadmaps for HBM solutions (source: TrendForce)

DRAM suppliers roadmaps for HBM solutions (source: TrendForce)

According to Korean media outlet Biz.Chosun, NVIDIA has placed orders for massive quantities of new HBM3e memory from both SK hynix and Micron. It was only yesterday that SK hynix announced its next-gen HBM4 memory has entered production, ready for 2024, with NVIDIA scooping up as much HBM3e memory as it can right now.

NVIDIA has reportedly pre-paid for around 700 billion to 1 trillion won for its HBM3e orders, which works out to a staggering $775 million USD. Remember: this is just the pre-payment and not the full amount... so we're talking an easy $1 billion (probably much more) in early HBM3e memory orders from NVIDIA alone.

NVIDIA's upcoming H200 AI GPU (source: NVIDIA)

NVIDIA's upcoming H200 AI GPU (source: NVIDIA)

NVIDIA is using the new HBM3e memory on its upcoming H200 AI GPU, which is a refreshed and beefed-up version sibling to the H100 AI GPU that is powering most things AI right now. NVIDIA's new H200 AI GPU has 141GB of HBM3e memory with up to 4.8TB/sec of memory bandwidth, an upgrade from the 80GB of HBM3 memory (non-e) on the current H100 AI GPU.

xxx source said: "According to the industry on the 26th, SK Hynix and Micron are known to have each received between 700 billion and 1 trillion won in advance payments from NVIDIA to supply cutting-edge memory products".

NVIDIA GPT-3 175B inference performance, including B100 AI GPU (source: NVIDIA)

NVIDIA GPT-3 175B inference performance, including B100 AI GPU (source: NVIDIA)

"NVIDIA's large advance payment led to investment actions by memory semiconductor companies that were struggling to expand HBM production capacity. In particular, SK Hynix, the largest supplier, is known to be planning to invest the advance payment received from NVIDIA intensively in expanding TSV facilities, which are holding back HBM production capacity".

"This is evidenced by the fact that work related to the establishment of a new TSV line was carried out smoothly in the third quarter of last year. Likewise, Micron's investment in TSV facilities is expected to receive a boost. Meanwhile, Samsung Electronics is also known to have recently completed HBM3 and HBM3E product suitability tests with NVIDIA and signed a supply contract".

NVIDIA is also expecting big things from the world of AI, where the company plans on making $300 billion on AI sales alone in 2027, which is a big driving reason behind securing the latest in HBM3 memory technology for the future of its AI GPUs. SK hynix, Samsung, and Micron are all making HBM memory as fast as possible, with the insatiable demand from NVIDIA, and now AMD, Intel, and other AI GPU makers.

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Anthony joined the TweakTown team in 2010 and has since reviewed 100s of graphics cards. Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering and has recently taken a keen interest in artificial intelligence (AI) hardware.

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