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Samsung, SK Hynix to supply memory chips to OpenAI’s Stargate project

Mohammed Fahad
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Samsung, SK Hynix to supply memory chips to OpenAI’s Stargate project
  • Joint ventures will launch two flagship AI data centres with an inaugural capacity of 20MW.

OpenAI’s quest to cement its place at the forefront of artificial intelligence just took a dramatic leap forward—this time, with powerful allies from South Korea.

Samsung Electronics and SK Hynix, two titans wielding dominance in the global memory chip arena, have both signed pivotal letters of intent to supply high-performance memory chips to OpenAI’s rapidly expanding data centre empire.

The collaboration marks a defining turn in the race to deliver on the ambitions of the Stargate project, OpenAI’s $500 billion brainchild set to transform the world’s AI infrastructure landscape.

South Korea as Asia’s new AI hub

The energy in central Seoul was palpable as OpenAI CEO Sam Altman joined President Lee Jae Myung and the leaders of Samsung and SK Hynix at the presidential office. Far more than a photo-op, the event laid the foundation for two advanced data centers on Korean soil, part of a “Korean-style Stargate.”

Seoul’s determination to evolve into Asia’s AI nucleus is backed by its massive base of ChatGPT subscribers—outnumbered only by those in the United States. Altman captured the moment, stating, “We’re very excited to get to build Stargate Korea and data centres with our wonderful partners to support the sovereign AI needs of Korea.”

The Stargate ecosystem

South Korea’s chipmaking power is foundational to this vision. Combined, Samsung and SK Hynix control nearly 70 per cent of the global DRAM (Dynamic Random Access Memory) market and an even more commanding share (close to 80 per cent) in high-bandwidth memory (HBM)—the must-have component for turbo-charged AI applications.

Analysts estimate that OpenAI’s proposed order for 900,000 advanced DRAM wafers by 2029 could exceed 100 trillion won, or around $70 billion, though that figure may shift with memory cycles.

United States leadership remains central. It was US President Donald Trump who announced Stargate’s ambitious grounds in January, charging partners like Oracle, SoftBank, and now the Korean chipmakers, with ensuring US primacy in AI. Nvidia, meanwhile, has pledged up to $100 billion in data centre technology for OpenAI, further amplifying the global stakes.

Building the future

As OpenAI cements itself in Korea—having opened its first Seoul office this year—it also signals a time of expansion and high expectations. The joint ventures with Samsung and SK Hynix will launch two flagship AI data centres with an inaugural capacity of 20 megawatts.

South Korea’s administration has even kept the door open to potential public financing. Presidential adviser Kim Yong-beom highlighted that “the significant part of the Stargate project would be impossible without memory chips from the two companies,” describing the partnership as a leap forward for Korea’s domestic chip industry.

An AI gold rush is now well underway: alongside the chip supply deals, Samsung SDS, Samsung Heavy Industries, and Samsung C&T are all joining the Stargate ecosystem.

From developing floating offshore data centres to pioneering energy-efficient cooling, their projects aim to redefine both infrastructure and sustainability in AI.

Opportunity and caution

Of course, not everything is smooth sailing. Industry watchers worry about the prospect of overbuilding and the risk of an AI investment bubble. Stargate itself has experienced delays tied to complex negotiations and site selection.

Yet, the prevailing sentiment is bullish: the collective expertise of Korea’s industrial giants, global AI leaders, and US tech visionaries is building a new backbone for the planet’s digital future.

Paytm’s UPI credit line to ease short-term borrowing

Ana Mary Joseph
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Paytm’s UPI credit line to ease short-term borrowing
  • The digital credit line rides atop India’s UPI rail, meeting consumers on the platform they already use for day-to-day transactions.
  • India is entering an era where UPI, BNPL, and digital wallets are merging into a seamless financial ecosystem.

Paytm’s leap into credit on the Unified Payments Interface (UPI) is quickly turning heads and could have a profound effect on how Indians access short-term borrowing.

Instead of relying on traditional credit cards, Paytm’s latest feature—”Paytm Postpaid”—lets users shop now and cover their expenses later, sparking new excitement around Buy Now, Pay Later (BNPL) functionality in one of the world’s busiest payment economies.

Launched in partnership with Suryoday Small Finance Bank in September 2025, “Paytm Postpaid” enables seamless spending with the simple promise: “Spend Now, Pay Next Month.” Cardless and frictionless, this digital credit line rides atop India’s UPI rail, meeting consumers on the platform they already use for day-to-day transactions.

It’s a key milestone for financial inclusion, especially in a country where credit card ownership remains modest by global standards yet smartphone adoption soars.

India: Payments powerhouse

According to GlobalData, UPI currently processes around 20 billion transactions a month, cementing India’s status as a global real-time payments powerhouse.

Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, calls Paytm’s credit push on UPI a groundbreaking move, expanding liquidity options for consumers and upping the stakes for both banks and card issuers.

“By skipping legacy cards and offering short-term credit directly via UPI, Paytm is set to boost both competition and BNPL adoption, giving millions easier access to credit.”

The wider landscape is buzzing with innovation. For instance, transit-linked payments have taken a leap forward thanks to NPCI’s partnership with Chennai’s MTC, rolling out “RuPay On-The-Go,” a card that handles everything from metro rides to parking.

Meanwhile, digital wallets have gone mainstream, powered by a tech-forward, youthful population. Google Wallet’s India debut in May 2024 made it easier than ever to store documents and digital credentials on the go, supported by a wide range of local brands.

A unique group finance feature, “UPI Circle,” launched in August 2024, extends payment flexibility within families or closed groups by letting a primary user control delegated transactions—another stride toward broader payment access and inclusion.

Sharma said that India is entering an era where UPI, BNPL, and digital wallets are merging into a seamless financial ecosystem.

“The demand for flexible, embedded credit is rewriting playbooks across the industry, presenting opportunities and risks alike. As more firms race to offer convenience, regulatory vigilance remains vital to keep lending standards robust. Ultimately, the direction is clear—innovation, inclusion, and digital-first solutions will define India’s vibrant payments future.”

Spotify to embrace a dual CEO structure from January

Ana Mary Joseph
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Spotify to embrace a dual CEO structure from January
  • Moving forward, Spotify’s top deck will feature co-CEOs Soderstrom and Norstrom.

Spotify is shaking things up at the top in 2025. Daniel Ek, the Swedish billionaire who co-founded the legendary streaming platform, will hand over his CEO reins in January and transition to executive chairman.

The big move comes as Spotify embraces a dual CEO structure—a shift aimed at sharpening its competitive edge and driving profitability amid intensifying global rivalry.

Ek, who helped transform Spotify from a Stockholm startup into an international powerhouse, announced he’ll step back from daily operations. Instead, he’ll focus on capital allocation and long-term strategy, taking on a European-style chairman role.

“Think of it as moving from a player to a coach,” Ek described, signaling his wish to stay involved in a hands-on but high-level way.

Spotify’s lead in the music streaming world is impressive, boasting nearly 700 million monthly users and an enormous library spanning more than 100 million tracks.

Its subscriber count eclipses Apple Music’s roughly 90 million, keeping competitors like YouTube Music and Amazon Music playing catch-up—though YouTube’s video integration and Amazon’s Prime perks continue to shape regional battles.

Despite its commanding market position, the company has faced persistent profit-margin pressures. Artists are pushing for higher payouts, and the growth of Spotify’s ad-supported tier, while boosting user numbers, has challenged bottom-line growth.

Innovative approach

In 2024, global revenue from recorded music grew 4.8 per cent to $29.6 billion, with streaming crossing the $20 billion threshold for the first time. More than half of that came from paid subscriptions, cementing streaming’s dominance, per IFPI’s Global Music Report.

Spotify had a hard-won victory in the black last year, posting its first annual profit thanks to a cocktail of price hikes and cost-cutting. This financial turnaround marks a milestone for a company that, since its 2006 founding, has battled tech giants, piracy, and a declining industry.

Today, Spotify is both a pioneer and an icon for Europe’s tech scene, often cited as proof positive that the region can produce scale-up giants to rival Silicon Valley and Asia.

Moving forward, Spotify’s top deck will feature co-CEOs Soderstrom and Norstrom—a team with over 15 years’ joint experience at the company and complementary skill sets.

Soderstrom, the tech and product guru, will chart Spotify’s digital future, while Norstrom heads up business growth, subscriber engagement, and content operations across music, podcasts, and audiobooks. Both will directly report to Ek, preserving tight alignment with Spotify’s visionary leader.

The co-CEO structure isn’t entirely uncharted territory among major tech firms. Oracle and Netflix, for instance, have successfully used two-headed leadership to navigate expansion and complexity.

Still, sceptics argue that dual CEOs risk blurring the lines of command. Only time will tell whether this innovative approach turns out to be the secret sauce for sustained growth and resilience in the face of fierce competition and relentless industry evolution.

LG Electronics India eyes $8.71b valuation in landmark IPO launch

Mohammed Fahad
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LG Electronics India eyes $8.71b valuation in landmark IPO launch
  • Prospective investors will be able to place their bids during a three-day window starting October 7, while major anchor investors get a head start on October 6.
  • South Korean consumer electronics giant isn’t issuing any new shares; all shares on offer are existing ones.

It looks like LG Electronics India is stepping into the IPO spotlight in a major way. The company is chasing a valuation of up to Rs774 billion, which is approximately $8.71 billion, making it one of the most significant public offerings in India this year.

The price band for its upcoming listing is set between Rs1,080 and Rs1,140 per share, as revealed in a public filing.

Prospective investors will be able to place their bids during a three-day window starting October 7, while major anchor investors get a head start on October 6.

At the higher end of the price range, the IPO could raise up to Rs116 billion rupees, or about $1.3 billion, for LG Electronics Inc—the South Korean parent company, which is set to sell a 15 per cent stake.

Notably, LG Electronics India isn’t issuing any new shares; all shares on offer are existing ones.

October: A busy month for IPO

The journey to this IPO has been a bit bumpy. The initial filing happened last December, aiming for a listing by May. Plans were postponed due to concerns over market instability but now, with the market buzzing and investor sentiment robust, the timing seems right to move forward.

October is shaping up to be a bustling month for IPO activity in India, with Tata Capital’s $1.75 billion IPO—the country’s biggest in 2025—launching concurrently. Meanwhile, co-working giant WeWork is also expected to test market waters at the same time.

Adding to the optimism, India’s tax authorities recently reduced consumption taxes on several products, including electronics, from 28 per cent to 18 per cent. This move is geared toward boosting demand ahead of the all-important festive shopping season.

LG Electronics India stands as the country’s second-largest appliance manufacturer, offering products like refrigerators, washing machines, and TVs. It’s locked in competition with global players such as Whirlpool and Samsung, as the Indian home appliances market is projected to grow at an annual rate of 12 per cent until 2029, according to consultancy RedSeer.

This IPO continues an already strong year for India’s capital markets. As of September 30, companies raised nearly Rs910 billion through IPOs—up significantly from the previous year, signaling growing investor appetite and a vibrant fundraising environment.

How tech providers can thrive in the fierce AI vendor race

Mohammed Fahad
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How tech providers can thrive in the fierce AI vendor race
  • Rules of engagement are being rewritten, and resting on traditional business models may leave even the most established players behind.
  • Competitive edge of GenAI innovations is eroding at a record pace—much faster than in previous cycles of technology evolution.

The AI revolution isn’t a simple sprint; it’s a high-stakes, constantly shifting series of competitive marathons.

According to Gartner, Inc., a leading technology insights firm, every tech company must rethink its competitive strategy as the AI vendor race reshapes the entire tech landscape. The rules of engagement are being rewritten, and resting on traditional business models may leave even the most established players behind.

From foundational infrastructure to advanced applications, Gartner sees multiple “AI races” happening simultaneously across the technology stack. The competitors include everything from tech giants to innovative newcomers.

Each one is vying for dominance, whether that means setting industry standards, capturing market share, or simply avoiding obsolescence.

Anthony Bradley, Group Vice President at Gartner, notes that victory in the AI race doesn’t look the same for everyone.

“It’s not one linear race with a universal finish line,” he explains. “Think of it as overlapping competitions with different outcomes—market leadership, breakthrough technology, or just keeping up with the rapid pace of change.”

New rules for winning

Success today isn’t as simple as selling an AI solution and expecting customers to realise value on their own. The old model of offering tools and walking away is fading.

Tech providers must deeply understand both their competitors’ moves and their customers’ shifting adoption patterns. This involves:

  • Monitoring market shifts and adjusting strategies accordingly
  • Studying the strengths, weaknesses, and potential moves of rival vendors
  • Aligning business approaches with where the real demand for AI is emerging

Rapid erosion of GenAI advantages

Nowhere is change happening faster than in the Generative AI (GenAI) space. Gartner highlights that the competitive edge of GenAI innovations is eroding at a record pace—much faster than in previous cycles of technology evolution.

In less than three years, GenAI will go from “highly advanced” to “table stakes” for tech companies. By 2026, the expectation is that the budgets for software with GenAI functionality will eclipse those for software without it.

  • The GenAI models market should grow by nearly 150% in 2025—crossing the $14 billion mark.
  • By 2028, annual growth is expected to stabilise at just under 40%, with GenAI seamlessly woven into most applications.
  • The demand for AI-optimised servers worldwide will spike by over 90% in 2025.
  • Nearly all premium computing devices will be AI-enabled by 2027.

Pivoting to real business impact

Adoption rates are one thing, but business value is another. Less than 20% of GenAI projects are currently meeting business goals, according to Gartner’s projections.

Anthony Bradley urges product leaders to shift away from focusing merely on specific use cases or functions. Instead, the aim should be to deliver tangible results that align with their clients’ most critical objectives.

What does this look like for tech providers?

  • Integrating business outcome metrics directly into product design and development
  • Tailoring marketing and implementation strategies to demonstrate real-world ROI
  • Continually reassessing client needs and market demand

For those in the tech world, the message is clear: winning the AI vendor race means adapting faster than ever before. Providers who ignore evolving customer expectations, slow down on innovation, or cling to past business models could quickly lose relevance.

Those willing to rethink what it takes to lead, however, will find not just survival, but the chance to thrive in an AI-driven future.

Citigroup raises AI infrastructure spending forecast

Ana Mary Joseph
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Citigroup raises AI infrastructure spending forecast
  • Believes global demand for AI compute will need an additional 55 gigawatts of power by 2030.

Citigroup has sharply increased its estimate for AI infrastructure spending by tech titans, projecting that these investments will surpass $2.8 trillion by 2029.

This marks a major jump from the $2.3 trillion forecasted earlier, driven by fast-track investments from hyperscalers and a clear rise in enterprise adoption of AI tools.

The explosion in artificial intelligence—sparked most recently by the launch of ChatGPT in late 2022—continues to lead to massive spending and rapid data centre expansion. While cheaper models like China’s DeepSeek and ongoing worries over US trade policy initially gave some investors pause, the appetite for capital expenditures has not lost momentum.

Citigroup now expects that hyperscalers—those cloud and infrastructure powerhouses like Microsoft, Amazon, and Alphabet—will channel $490 billion into AI capital investments by the end of 2026. That’s up from $420 billion previously anticipated.

These firms have collectively poured billions into boosting data centre capacity and resolving supply chain bottlenecks to stay ahead of swelling AI demand.

Financial strain

According to Citi analysts, this ambitious wave of spending should become evident in upcoming earnings calls, with tech giants likely to issue guidance that reflects ramped-up infrastructure outlays—even before enterprise demand becomes fully visible.

Looking further out, Citigroup believes global demand for AI compute will need an additional 55 gigawatts of power by 2030. This level of expansion necessitates around $2.8 trillion in extra capital spending globally, with US hyperscalers on the hook for about half of that total.

What’s especially striking is that many of these companies are no longer able to rely just on profits to fund such immense projects. At roughly $50 billion for every added gigawatt of compute, the financial strain has forced tech firms to tap into debt markets and creative financing strategies.

This new reality is beginning to show up in reduced free cash flows, and investors are demanding clarity on how tech leaders plan to finance these outlays without jeopardising long-term returns.

Citigroup notes, however, that enterprise deployments from companies like Eli Lilly, Hitachi, and Wolters Kluwer provide strong external validation of the ongoing value reshaping the tech investment landscape.

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