SK Telecom (SKT) unveiled an AI pyramid strategy focusing on infrastructure, transformation and services, with the aim of tripling investments in projects related to the technology by 2028.

During a press conference today (26 September), CEO Ryu Young-sang (pictured) explained its goal is to strengthen its capabilities and collaborate with a range of partners to expand its footprint in the global AI market.

AI-related investment will increase from 12 per cent of revenue between 2019 and 2023 to 33 per cent over the next five years.

Ryu stated AI infrastructure covering data centres, chips and multiple large-language models (LLMs) is the base of its pyramid focus.

With high demand for data centres and rising greenhouse gas emissions, the company will introduce energy-saving immersion cooling systems and hydrogen fuel cells. It also will expand into the AI hosting business, which it explained generates higher margins.

Using its expertise in these areas, Ryu said it plans to expand its presence in the global data centre business by teaming with SK Broadband. It aims to double its domestic data centre capacity by 2030.

In the middle area of the pyramid covering its core businesses and new areas, it will use AI in marketing and customer contact centres, and to improve operational efficiency of infrastructure, targeting costs reductions of 20 per cent to 30 per cent.

SKT also officially launched the world’s first Korean LLM service A dot which it released in beta in 2022.

It plans to adapt A dot into a personal AI assistant service.

The move advances a strategy SKT detailed in 2022 for transitioning into an AI company, with subsequent moves to reorganise to drive the initiative and a $100 million investment in US-based AI company Anthropic.