South Korean telecommunications giant SKT is making strides in artificial intelligence with a $200 million investment in California-based Smart Global Holdings (SGH). This strategic move aims to solidify SKT’s position as a global leader in AI. By acquiring 200,000 preferred shares, valued at $32.81 each, SKT will secure approximately a 10% stake in SGH.
SGH intends to use the funds to enhance financial flexibility and expand its Penguin Solutions, which offer end-to-end AI infrastructures utilizing Nvidia GPUs. “SGH and Penguin Solutions have a proven methodology to deploy their AI infrastructure solutions at some of the most innovative and demanding large-scale enterprise customers in the world,” stated Ryu Young-sang, CEO of SKT.
The partnership aims to leverage the strengths of both companies, enhancing customer offerings in differentiated global end-to-end AI factory and data center solutions. This includes advanced memory market products and NPU-based AI edge servers, promising to boost the capabilities and reach of both firms.
SKT’s recent investments indicate its commitment to transforming into an AI powerhouse. Last month, it invested $10 million in Perplexity, a generative AI search engine aiming to challenge Google’s dominance. Additionally, the company invested $100 million in AI firm Anthropic to create a multilingual large language model customized for global telecommunications companies.
Last year, SKT joined Deutsche Telekom and Singtel in forming the Global Telco AI Alliance to explore the integration of AI technologies within the telecom sector. This collaborative approach showcases SKT’s dedication to innovation and its strategic investment in AI capabilities.
