SK telecom to make its largest AI investment in SGH

[Courtesy of SK telecom Co.]

South Korea’s largest telco SK telecom Co. is set to make a significant investment in SMART Global Holdings (SGH), Corp., a U.S.-based company specializing in artificial intelligence and data centers. The largest investment that SK telecom has ever made in AI will open the door for the Korean company to solidify its presence in the sector.

SK telecom announced a $200 million agreement for convertible preferred stock with SGH on Tuesday and will acquire a 10 percent stake in SGH upon conversion to common stock via the deal. SGH, which is headquartered in Silicon Valley, designs, builds, and operates AI clusters composed of large-scale graphics processing unit (GPU) servers.