In sum – what you need to know:
SK Telecom’s AI business is booming – The Korean telco saw strong Q1 growth in AI, with its AI data center (AIDC) revenue rising 11.1% y-o-y
Q1 net profit edges up despite flat sales – SK Telecom posted a 3.2% y-o-y increase in net profit, even as consolidated revenue remained flat
AI services take shape – SK Telecom’s consumer and enterprise AI offerings are gaining traction, with over 9 million users of its ‘A.’ assistant
Korean telco SK Telecom said it experienced solid revenue growth in its artificial intelligence (AI) businesses, such as AI data centers (AIDC) and AI transformation (AIX), during the first quarter of the year.
The telco said its quarterly net profit surged 3.2% year-on-year to KRW364.4 billion ($259.5 million), impacted by a non-operating loss of KRW59.5 billion, with consolidated sales flat at KRW4.5 trillion. Mobile service revenue was steady at KRW2.7 trillion.
In the first quarter, SK Telecom’s AIDC business recorded revenue of KRW 102 billion, marking an 11.1% year-on-year increase, driven by increased data center capacity and utilization rates. Positioned as a high-growth business generating over KRW 100 billion per quarter, AIDC is set to accelerate its push into hyperscale AIDC in the mid to long term., SK Telecom said.
The AIX business also continued its growth trajectory, generating KRW 45.2 billion in revenue, up 27.2% from the same period last year. While AI cloud revenue continues to rise, the B2B segment has also contributed to the company’s growth through expanded AI marketing contracts. SK Telecom plans to officially launch ‘A. Biz’ (A-DoT Biz), its enterprise-focused AI assistant, as early as the first half of this year following beta testing.
In the AI services domain, the cumulative user base of the ‘A.’ (A-DoT) service surpassed 9 million. Meanwhile, ‘Aster’ (A*), SK Telecom’s global AI agent service, launched open beta testing in the U.S. at the end of March. The service is being continuously refined based on user feedback, with an official release scheduled for the second half of this year.
Through its “AI Infrastructure Superhighway” and “AI Pyramid Strategy” initiatives, the Asian telco is investing heavily in AI data centers, cloud-based GPU services and edge computing to support the growing demands of AI applications and services.
At the core of SK Telecom’s AI ambitions is the development of an “AI Infrastructure Superhighway,” a strategic initiative focused on three main components:
-AI Data Centers (AIDCs): The carrier is constructing hyperscale AI data centers across South Korea, each designed to exceed 100 megawatts in capacity. These facilities aim to serve as central hubs for AI processing and storage, supporting both domestic and international AI workloads.
-GPU-as-a-Service (GPUaaS): To democratize access to high-performance computing, SK Teñecp, has launched a cloud-based GPU service. This platform allows businesses and developers to utilize powerful GPU resources on-demand, facilitating AI model training and deployment without the need for significant upfront hardware investments.
-Edge AI: Recognizing the importance of low-latency processing, the Asian telco is expanding its edge computing capabilities. By integrating AI processing closer to data sources, such as mobile devices and IoT sensors, the company aims to enhance real-time data analysis and decision-making across various applications.
To bolster its AI infrastructure, SK Telecom has formed strategic partnerships and made significant investments:
-Lambda: In collaboration with global GPU cloud provider Lambda, SK Telecom launched the Gasan AI data center in Seoul. This partnership enhances its GPUaaS offerings and expands its AI processing capabilities.
-Penguin Solutions: The telco has also invested in Penguin Solutions, a company specializing in AI-driven data center solutions. This investment supports the development of advanced AI data center technologies and infrastructure.
-Anthropic and Perplexity AI: SK Telecom has partnered with AI startups Anthropic and Perplexity AI to integrate cutting-edge AI models into its services. These collaborations aim to enhance the Korean carrier’s AI capabilities and offer advanced AI-driven solutions to customers.
Complementing its infrastructure efforts, SKT has implemented the “AI Pyramid Strategy,” which focuses on AI infra, AI transformation and AI services.
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