American multinational automotive and clean energy company, Tesla is negotiating with SK Hynix to secure enterprise-grade solid-state drives (eSSDs) valued at around $725 million, reports the Korea Economic Daily. If confirmed, this would be one of the largest single eSSD purchases to date and would mark a significant milestone in Tesla’s drive to bolster its AI supercomputing infrastructure. Tesla aims to use SK Hynix’s storage solutions in support of its wafer-scale Dojo AI processors, which are central to Tesla’s autonomous driving technology and other AI ambitions.

The proposed agreement highlights the critical role of advanced storage in AI supercomputing. Tesla’s Dojo processors require vast amounts of storage to handle data-intensive AI workloads, and SK Hynix’s Solidigm subsidiary offers industry-leading, high-capacity eSSDs tailored to such needs. Specifically, Solidigm’s D5-P5336 model, with 60TB capacity, could provide the storage density Tesla needs to optimize data processing speeds while reducing energy consumption—a key consideration in large-scale AI operations.

Tesla has significantly increased its investment in AI infrastructure, with CEO Elon Musk indicating that Tesla is spending around $10 billion annually on AI hardware, including server and semiconductor capabilities for autonomous driving and robotic applications. This investment aligns with SK Hynix’s robust Q3 performance, marked by record-breaking revenues of $13 billion, largely driven by demand for high-bandwidth memory (HBM) and eSSDs for AI applications.

If finalized, the partnership could secure Tesla’s storage foundation for its Dojo supercomputers while positioning SK Hynix as a major supplier in the fast-growing AI and data-driven industries.