Microsoft and Google are negotiating three-year DRAM supply agreements with SK Hynix. These proposed contracts reportedly include significant upfront deposits and price floors. The strategy shifts memory procurement from traditional purchasing to a reserved asset model.
The tech giants aim to secure DDR5 and High-Bandwidth Memory (HBM) essential for AI infrastructure. Locking in long-term supply helps mitigate price volatility during rapid data center expansions.
This development pressures other cloud providers and enterprises to pursue similar long-term contracts. Such agreements could fundamentally reshape the semiconductor memory market and its pricing structures.