SKT Enters AI Data Center Market Invests In Lambda

SKT Enters AI Data Center Market, which aims to become a global AI company, has begun full-scale AI data center (DC) business, which is considered an essential infrastructure in the artificial intelligence (AI) field. SK Telecom announced on the 21st that it has invested in Lambda, a global GPU cloud company, to secure stable graphics processing units (GPUs). Lambda, founded by an AI engineer, receives the latest GPUs from NVIDIA and provides cloud services. Currently, the global data center server GPU market is dominated by NVIDIA, so from big techs to startups pursuing AI businesses, they are putting a lot of effort into securing GPUs.

Unlike existing data centers that provide physical space for stable storage of data, the AI ​​DC being promoted by SK Telecom provides GPU servers essential for AI learning and inference, power supply for stable operation, and a cooling system for thermal efficiency management. It is a new business area. SK Telecom is strengthening its AI DC competitiveness through investment in Lambda, with President Yoo Young-sang personally meeting Stephen Balaban, founder, and CEO of Lambda, who visited Seoul in December last year, and then visiting Lambda’s San Jose headquarters in January to conduct negotiations. He said that he had put a lot of effort into securing it.

SK Telecom expects that it will be able to pursue AI DC business based on Korea’s largest AI cloud capabilities as it has secured a stable GPU through this investment. In addition, we plan to sign a strategic partnership agreement with Lambda for global business cooperation within the first half of the year and begin targeting the AI ​​cloud market at home and abroad. In fact, in the industry, many domestic companies are beginning to combine services and products with generative AI, and SK Telecom predicts that demand for the AI ​​cloud market will continue to increase.

In addition, SK Telecom is improving performance by consolidating the know-how in operating its subsidiary, SK Broadband Data Center, as well as the capabilities of SK ICT affiliates, such as SK Hynix’s high-bandwidth memory (HBM) and Sapion’s AI semiconductors for data centers, into the AI ​​DC business. We plan to increase competitiveness in terms of cost efficiency and cost efficiency. In addition, SK Telecom plans to expand its AI DC business into the global market and is considering Southeast Asia as its first entry region. Southeast Asia has recently been highlighted as a region with the best location for building AI DCs in response to the rapidly increasing demand for global AI business.

SK Telecom will create visible results in business cooperation with operators with data center operation capabilities in Southeast Asia at the world’s largest mobile communications exhibition ‘Mobile World Congress (MWC) 2024’ to be held on the 26th, and based on this, launch a global AI DC business. We plan to expand. SK Telecom President Yoo Young-sang said, “We plan to enter the AI ​​DC and AI cloud markets in earnest based on SK Telecom’s AI capabilities and stable GPU .” He added, “We will continue to develop AI- related capabilities, including infrastructure, to expand our capabilities in Korea and the global market.”

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