SK telecom joins hands with global carriers for hyper-scale AI development

[Photo by Lee Seung-hwan]

SK telecom Co., South Korea’s top mobile carrier, will form an artificial intelligence (AI) alliance with its peers such as from the U.S., Germany, and Japan, to respond to the growing number of major big tech companies engaged in hyper-scale AI development.

According to multiple sources from the information technology (IT) and telecommunications industry on Wednesday, SK telecom will sign a memorandum of understanding (MoU) on the exchange of big data and AI development with major global carriers in the U.S., Germany, and Japan. It will announce the details as early as this week. The partner carriers are key operators in each country.

The companies will share non-identifying information such as global positioning system (GPS) data held by each company and use it to develop customized AI, according to sources.

“While Google Inc. and Microsoft Corp. in the U.S. have built hyper-scale AI mainly based on language data, mobile operators can build other services by utilizing location information that big tech companies don’t have,” said an IT industry official.

The official noted that “such big data will be a great asset,” and that “it will also give us an advantage in future negotiations with big tech companies.“

Analysts say that SK telecom has expanded its AI base through the latest collaboration.

SK telecom’s focus on global alliance comes as it sees it realistically impossible to match the investment scale of U.S. big tech companies.

OpenAI Inc.’s ChatGPT is known to have invested about 800 billion won ($627.5 million) in equipment and more than 1 billion won in operating cost is being spent every day.

AI learning costs and labor costs are spent in addition to the above. “Huge amounts of money are needed as competition becomes fierce for hyper-scale AI development,” said an official from the IT industry. ”I don‘t think there is a Korean company that can afford such costs all at once.“

SK telecom has set out to become an AI company under the leadership of President and Chief Executive Officer Ryu Young-sang.

In particular, under the motto “AI to everywhere,” SK telecom plans to completely reorganize its five business areas with AI - customer and technology, time and space, industry, core industry model, and environmental, social, and corporate governance. The plan comes as AI has turned essential for the growth of all sectors.

SK telecom is stepping up its media business such as content, advertising, and e-commerce, which are outside the telecommunications business, and enterprise businesses such as data centers and clouds, and a full spread of AI is critical in lowering the cost of these services while increasing customer satisfaction.

SK telecom currently implements a two-track strategy involving direct development and external expansion. AI service “A dot,” which was developed with an investment of more than 150 billion won, is a good example.

In June this year, the company successfully launched the “K-AI Alliance,” a partnership with startups such as Moloco, Inc., MakinaRocks Co., Scatter Lab Inc., and FriendliAI aimed at developing AI services.

“We will jointly explore various opportunities for cooperation in the field of AI to ensure that Korea’s AI technology and infrastructure can be widely utilized in the global market,” Ryu said.