Leading Chinese cloud service giants, including Alibaba, Tencent, and ByteDance, are currently engaged in negotiations with Samsung Electronics and SK Hynix for securing long-term server DRAM supplies. Certain clients are considering extending their initial 3-to-5-year supply agreements into ultra-long-term contracts, spanning until 2035. These contracts encompass a range of products, such as server DDR and low-power memory LPDDR.

Fueled by the continuous surge in demand for AI servers and the tightening memory supply, cloud service providers are stepping up their efforts to secure memory capacity well in advance. They are even prepared to pay premium prices to guarantee a steady supply for their expanding AI operations. Notably, major U.S. tech firms have already secured memory resources through long-term supply agreements. The recent move by Chinese cloud service providers underscores that the competition in AI infrastructure is now extending further into the server memory supply chain.