TL;DR:
- KT Corp. invests 15 billion won ($11.6 million) in Seoul-based AI infrastructure software firm Moreh.
- The goal is to disrupt Nvidia’s dominance in the AI services market through collaborations with AI-focused companies.
- KT aims to become a full-stack operator, providing both AI hardware and software solutions.
- The investment will strengthen KT’s AI full-stack alliance and reduce reliance on foreign GPUs.
- KT plans to release its hyperscale AI Mi:dm and expand AI-based business-to-business services.
- The ultimate objective is to establish a global AI full-stack presence, beginning with a focus on the domestic market.
Main AI News:
South Korean telecommunications giant, KT Corp., is making waves in the AI industry with a strategic investment of 15 billion won ($11.6 million) in Moreh, a cutting-edge AI infrastructure software company headquartered in Seoul. This move comes as KT seeks to disrupt the dominance of Santa Clara-based Nvidia’s software in the AI services and solutions market. By collaborating with companies possessing exceptional AI expertise, KT aims to revolutionize the ecosystem for AI services.
The substantial investment, announced on Sunday, will bolster KT’s AI full-stack operations. Out of the total investment, 10 billion won will come directly from KT, while its affiliate, KT Cloud, will contribute an additional 5 billion won. This marks KT’s second strategic investment in Moreh within a span of two years, underlining the telecom giant’s confidence in the company’s potential.
AI full stack encompasses both AI infrastructure and application services, including crucial components like chips. By becoming a full-stack operator, KT aims to provide a comprehensive array of AI-related hardware and software solutions. However, finding a company with a complete AI full stack on a global scale has proven to be a formidable challenge. KT views this investment as a significant stride towards realizing its goal.
Moreover, KT perceives this move as an opportunity to fortify its AI full-stack alliance. Last year, the company invested a substantial sum of 30 billion won in Rebellions, a Gyeonggi Province-based fabless company specializing in AI semiconductor design. These strategic investments are all part of KT’s broader vision to drive transformative changes in the domestic AI infrastructure, which has been heavily reliant on Nvidia.
Nvidia currently enjoys an impressive 80% market share in computing infrastructure software essential for AI service development, thanks to its widely used graphics processing units (GPUs) and the pivotal CUDA (Compute Unified Device Architecture) software.
By integrating Moreh’s AI infrastructure software stack, KT aims to offer a CUDA-compatible infrastructure software, thus reducing the reliance on foreign GPUs and fostering greater independence and autonomy in the AI space.
KT’s plans for the near future are ambitious. In October, the company is set to unveil its hyperscale AI Mi:dm. Alongside this launch, KT will further concentrate on AI infrastructure and expand its AI-based business-to-business services. The ultimate goal is to establish a worldwide AI full-stack presence, commencing with a strong focus on the domestic market.
Conclusion:
KT’s significant investment in Moreh demonstrates its determination to revolutionize the AI landscape. By strengthening its AI full-stack capabilities and reducing dependency on Nvidia’s software, KT aims to position itself as a key player in the AI services market. With ambitious plans for future AI releases and expansions, KT seeks to drive transformative changes in the domestic and global AI infrastructure, paving the way for groundbreaking advancements in the AI industry. As businesses increasingly embrace AI technologies, KT’s strategic moves indicate its commitment to stay ahead in this competitive market.
