SK Telecom invests $200 million in US AI data center solutions firm

By Candice Kim Posted : July 16, 2024, 13:56 Updated : July 16, 2024, 13:56
The image shows SK Telecom CEO Yoo Young-sang left and Smart Global Holdings CEO Mark Adams right signing a 200 million investment agreement in Los Altos California marking their collaboration in AI infrastructure solutions Courtesy of SKT
In this photo released on July 16, 2024, SK Telecom CEO Ryu Young-sang (left) and Smart Global Holdings CEO Mark Adams (right) pose after signing a $200 million investment agreement in Los Altos, California. Courtesy of SKT
 
SEOUL, July 16 (AJU PRESS) - SK Telecom on Tuesday announced a $200 million investment in Smart Global Holdings (SGH), a U.S.-based data center integration solutions company. In its largest artificial intelligence-related investment to date, SK Telecom has recently signed a deal to secure about 10 percent stake in SGH through convertible preferred stock.

SGH, headquartered in Silicon Valley, specializes in designing, building and operating AI clusters with large-scale GPU servers. The company has a track record of constructing and managing significant AI infrastructure projects for global tech giants, including Meta's Research Super Cluster.

The investment comes as demand for specialized AI data center solutions grows, driven by the development of large language models requiring extensive data processing capabilities. SK Telecom aims to leverage this partnership to enhance its competitiveness in the AI infrastructure value chain.

The collaboration will focus on various areas of AI infrastructure, including data centers, edge AI and future memory solutions. Both companies plan to develop Telco Edge AI Solutions for industrial applications and explore overseas market opportunities. SK Telecom expects synergies between its data center management systems and SGH's AI cluster expertise, supporting its expansion into domestic and international AI data center markets.
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