SKT, Lambda to partner on Nvidia-powered AI data center

SK Telecom and California-based Lambda will deploy Nvidia's H100 chips in a data center in Seoul in a collaboration on "GPUs as a Service" technology.

SK Telecom CEO Ryu Young-sang, left, and Lambda founder Stephen Balaban pose for a photo after discussing the two companies' potential partnership at Lambda's headquarters in California in January. [SK TELECOM]

SK Telecom is partnering with Lambda, a California-based GPU cloud provider, to open an AI data center in southern Seoul in December filled with Nvidia chips.

The Korean mobile carrier said on Wednesday that it has entered an AI cloud business partnership agreement that will see Lambda deliver Nvidia’s H100 chips, which will be deployed at an AI data center in Geumcheon District, southern Seoul.

The size of the initial cluster of chips to be set up in December was not disclosed, but the company stated that it plans to expand the figure to “a few thousand” within the three years depending on domestic AI market demand. The two companies are working to receive an early supply of the latest H200 chips as well.

The existing data center operated by SK Broadband will be renovated to house the new center. The center plans to operate with a power density of 44 kilowatts (kW) per rack for stable GPU operation, approximately nine times higher than the average power density of 4.8 kW per rack for domestic data centers.

Lambda will also establish a Korean branch during the month, the first to be formed in the Asia Pacific region.

SK Telecom made a $20 million investment in Lambda to collaborate on “GPU as a service” technology, or GPUaaS, which is a service that allows enterprises to utilize GPUs cost-effectively in a cloud environment without purchasing the chips needed for AI service development.

The mobile carrier plans to release the new AI cloud service with subscription tiers in December as well.

The global GPUaaS market is expected to reach $49.84 billion by 2032, with an annual growth rate of 35.8 percent, according to market researcher Fortune Business Insights.

“The partnership with Lambda is significant in the sense that SK Telecom will be able to secure a stable GPU supply,” said Kim Kyeong-deog, head of SK Telecom’s enterprise business, in a statement. “We will propel our efforts to become the nation’s biggest GPU farm to strengthen Korea’s AI competitiveness, and establish a gateway for global expansion.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]