SK Telecom announced on the 2nd that it will launch a total solution market targeting AI data centers (AI DC) by integrating the latest technologies from group member companies and domestic and foreign partners through its 'AI Pyramid 2.0' strategy. SK Telecom aims to accelerate the construction of an 'AI Infra Super Highway' by providing solutions that meet all types of AI DC demand, from graphic processing unit (GPU) rentals to small modular, customer-dedicated, and hyperscale levels.
Ryu Young-sang, CEO of SK Telecom, held a press conference on the 2nd (local time) in Barcelona, Spain, where MWC25 is being held, and unveiled the AI Pyramid 2.0 strategy, which includes a blueprint for the AI DC business model and the enhancement strategy of AI agents for B2B and B2C, as well as strengthening AI technology competitiveness through self-reliance and cooperation.
The CEO noted, 'The AI DC business will be developed in an 'a la carte' manner to meet all types of customer demand, and the AI agent for B2B and B2C will continue to provide customers with new experiences through service innovation while consistently enhancing AI tech capabilities based on self-reliance and cooperation to achieve revenue growth in AI.'
SK Telecom plans to target the market by segmenting the AI DC business into four main models: subscription-based AI cloud GPU subscription service (GPUaaS), small modular AI DC, dedicated AI DC for single customers, and hyperscale AI DC.
SK Telecom is currently executing the 'AI Infra Super Highway' strategy, which aims to create easily accessible and convenient AI infrastructure for everyone. To this end, it launched the subscription-based AI cloud service 'SKT GPUaaS (GPU-as-a-Service)' at the Gasan AI DC in Seoul last December and is kicking off the construction of the AI Infra Super Highway. There are also plans to build a 100MW-class AI DC in Korea based on partnerships with global big tech companies.
In addition, the strategy is to push forward with a solution business that provides an all-in-one turnkey for all processes of AI DC construction and a small modular AI DC business model to meet diverse market demands. The customer-dedicated AI DC is a business that offers a customized approach from design to construction and optimization for companies that want to build a dedicated AI DC in their own space. This is suitable for public institutions with strict security and companies with significant data.
The CEO emphasized, 'SK Group is designing and operating eight data centers with a total capacity of 137MW, and we have established global top-level AI DC construction capabilities in cooperation with our member companies and domestic and foreign partners, leveraging the strengths of SK Ecoplant, which has built state-of-the-art semiconductor fabs, and optimization solutions from Penguin Solutions.'
The modular AI DC is designed to house AI infrastructure, including GPUs and NPUs, in a space the size of a freight container, which is expected to generate demand among startups and research institutions that need to quickly acquire low-capacity data centers in a cost-effective manner. The modular approach allows for the construction of an AI DC in just three months, with the construction cost at about 70% of the standard and double the power efficiency.
Ryu Young-sang stated, 'We are planning to advance the business through partnerships with companies possessing the best technology in mobile modular data centers in the country.' He added, 'As the modular approach allows for quick construction, we expect to achieve revenue generation in a short time.'
The AI DC being constructed by SK Telecom plans to integrate solutions for energy, AI memory, operations, and security with the eco-friendly energy solutions of group member companies, starting with SK hynix's HBM. CEO Ryu Young-sang also mentioned the ongoing AI DC business, saying, 'The Gasan AI DC, established at the end of last year, is in discussions to provide AI cloud services to several corporations based on its ability to secure the latest NVIDIA chips and its domestically developed state-of-the-art AI operations.' He noted, 'For hyperscale models, we will be working with global big tech companies to implement cutting-edge technologies.'
The AI agent business aims to realize revenue generation through the upcoming launch of the AI B2B agent 'a dot biz.' SK Telecom is currently advancing the AI agent business divided into B2C (personal services) and B2B (business services). The AI B2B agent 'a dot biz,' which is being developed by SK Telecom and SK C&C as a one team, will spread to 21 member companies of SK Group after going through internal beta tests and will focus on penetrating the AI B2B market.
'a dot biz' consists of two products: 'a dot biz,' which revolutionizes routine tasks such as reserving meeting rooms and creating meeting minutes, and 'a dot biz pro,' which provides specialized functions in professional areas such as tax, legal, and HR.
SK C&C also introduced 'a dot biz HR' widely during its recruitment process conducted in January, confirming improvements in recruitment process efficiency and evaluation accuracy. SK C&C managed to complete the review of thousands of applications in just four hours, whereas the traditional time frame was one week, and the announcement of successful candidates was made just two days after the application deadline, significantly shortening the overall recruitment period. The AICT (AI Creativity Test) function, which analyzes applicants' responses from multiple perspectives for a more objective and precise evaluation, also greatly enhanced the accuracy of applicant assessments.
The AI agent 'a dot' plans to continue evolving its services. It aims to enhance the killer service of AI call summarization by expanding new functions such as documents and networking, and to evolve into an AI agent that anticipates what customers need and fulfills user requests such as search and reservations.
The global AI agent 'Aster,' which is preparing for release in the U.S., also plans to expand globally by collaborating with global telecommunications companies, including the Global Telco AI Alliance.
Since initiating Covert in 2019, SK Telecom has steadily developed and advanced AI models, unveiling its own large language model (LLM) 'a dot x' in 2022. 'a dot x' has expanded its application in AI tools within the company and in the B2B solution 'a dot biz,' effectively becoming the focal point for AI dissemination. Notably, 'a dot x' entirely replaced ChatGPT, which had been used for AI call summarization, increasing productivity in government administrative services and marketing, with daily calls to 'a dot x' surpassing 50 million.
'a dot x 4.0', which will be completed in the first half of the year, is a highly efficient Korean-specific LLM that excels in knowledge performance in Korean, with the tokenizer efficiency improved by over 1.5 times. SK Telecom plans to continuously enhance the competitiveness of its own LLM through developments in conversation and multimodal capabilities based on the 'a dot x 4.0' foundation model.
The SK AI R&D Center, established by SK Telecom at the end of last year, serves as the group's 'AI brain' to promote AI innovation across the group and is focused on advancing next-generation AI technology by integrating the capabilities of its member companies. Through this, SK Group aims to create AI application cases in its core businesses.
The SK AI DC testbed located in Pangyo will serve as a key example, consolidating the AI DC capabilities of member companies to develop and verify advanced technologies. The SK AI DC testbed is expected to conduct tests on cutting-edge AI infrastructure technologies, including NVIDIA's latest chips, SK hynix HBM, GPU virtualization solutions, and energy optimization.
In addition to global partnerships, cooperation with members of the K-AI Alliance will be further strengthened this year. SK Telecom has been enhancing its business cooperation through proactive investments in major global AI companies, starting with the investment in Anthropic in 2023 and continuing with investments in companies like Perplexity, Lambda, and Penguin Solutions. The corporate value of the four global AI companies invested by SK Telecom has increased by 3.1 times compared to the investment point, and the strategy is to continue to strengthen partnerships to enhance global competitiveness.
SK Telecom will expand the scope of AI cooperation with members of the 'Global Telco AI Alliance' formed with global telecommunications companies. SK Telecom and global telecommunication companies agree that collaboration in various fields, such as infrastructure and services, is crucial to creating a telecom-led AI ecosystem, and they plan to explore various cooperations during MWC25. In particular, this year is anticipated to be a year of expansion for the Global Telco AI Alliance, with new members joining.
In addition, business and technological cooperation with the K-AI Alliance, established under the leadership of SK Telecom, will be accelerated. The K-AI Alliance, founded by SK Telecom and innovative AI startups in Korea, started with seven members at MWC 2023 and has expanded to 30 members, actively conducting business across 31 cities in 13 countries worldwide, leading the innovation of the Korean AI ecosystem.
The AI specialists among SK Telecom and K-AI Alliance members number over 3,000, and SK Telecom has launched various AI solutions through technological synergies with its member companies. The AI simultaneous interpretation service 'TransTalker,' co-commercialized with Conan Technology, is currently used by 16 corporations, and the AI targeted advertising platform ASUM 2.0, developed in collaboration with Moloco, has improved advertising effectiveness by 81% compared to before. SK Telecom plans to continue to expand its success stories with the K-AI Alliance.
The CEO stated, 'SK Telecom's AI is transitioning from a period of exploration and dissemination to a phase of securing tangible results' and asserted, 'Through the AI Pyramid 2.0 strategy, we will actively pursue monetization of AI efforts and contribute to the creation of a Korean-style AI ecosystem.'