SK Telecom will work with ICT companies representing Japan and East Asia to expand the artificial intelligence ecosystem. It will form a joint fund to support the growth of promising startups.

SK Telecom said on Tuesday it held a press briefing with Japan's ICT group NTT and Taiwan's Chunghwa Telecom at NTT's headquarters in Otemachi, Tokyo, and agreed to jointly create the IOWN AI Fund to invest in next-generation AI technology.

The fund is expected to be worth $500 million, about 760 billion won. The three companies will set up Catalight Capital, a fund manager based in Silicon Valley and East Asia. SKT said, "The formation of this AI fund is meaningful in that leading East Asian ICT companies are jointly moving to expand the AI ecosystem," and added, "It will serve as an opportunity to connect the technological capabilities of East Asian countries such as Korea and Japan with the global innovation ecosystem."

The AI fund will invest in promising startups across a wide range of areas, including AI data centre infrastructure, AI semiconductors, AI service applications, AI software and optical communications. Innovative companies in North America as well as Asia and Europe are key investment targets.

Fund participants will go beyond financial investment by supporting technology verification, service advancement and customer development to create new business models. They will soon close recruitment for first-round investors and officially launch the AI fund. NTT said about 20 global companies, including Sony and Toshiba, have shown interest in participating as investors. SK Hynix is also preparing to take part in the fund.

SKT plans to continue promoting Korea-Japan economic and technological cooperation in business-to-business and consumer services, including AI data centres, starting with the formation of the fund.

Akira Shimada (시마다 아키라), NTT's chief executive officer, said, "To realise AI-native infrastructure, it is essential to combine the power of cutting-edge technologies and partners around the world," and added, "We will pursue business partnerships with promising startups and create a new industrial foundation."

Lin Rong-tz (린롱츠), president of Chunghwa Telecom, said, "Based on our telecommunications expertise, we will support global startups through cross-border business development," and added, "Together with the best partners, we will accelerate the commercialisation of advanced technologies and build a next-generation AI ecosystem."

Jae-heon Jeong (정재헌), SKT's CEO, said, "SKT has built an AI ecosystem by nurturing many global AI companies as well as promising startups at home and abroad," and added, "Based on this successful experience and the competitiveness of our group affiliates, we will expand opportunities to cooperate with AI innovative companies."