SK Telecom, NTT and Chunghwa Telecom launch $500M AI fund

SK Telecom, NTT and Chunghwa Telecom Launch $500M AI Fund

SK Telecom, Japan’s NTT and Taiwan’s Chunghwa Telecom announced on Wednesday the creation of a joint $500 million investment fund targeting next-generation AI technologies, in what is being described as one of the largest jointly managed investment vehicles between South Korean and Japanese companies in the advanced technology sector.sedaily

The three telecommunications companies unveiled the “IOWN AI Fund” at a press conference held at NTT’s headquarters in Tokyo’s Otemachi district, where they also confirmed plans to establish Catalight Capital, a fund management company with operations in Silicon Valley and East Asia.yna

Where the Money Will Go

The fund will invest in startups across North America, Asia and Europe working on AI data center infrastructure — including power efficiency and liquid cooling — AI semiconductors such as accelerators, GPUs and NPUs, optical communications technology, and AI service applications in healthcare, manufacturing and finance. NTT’s Innovative Optical and Wireless Network, or IOWN, platform is central to the initiative. The technology uses light rather than electricity for data transmission, aiming to reduce energy consumption at AI data centers.letsdatascience

Beyond financial investment, the fund plans to support portfolio companies with technology verification, service development and customer discovery.chosun

A Growing Coalition

The three founding telecom companies are already drawing broader interest. NTT said roughly 20 global companies — including Sony, Toshiba, Fujitsu and Japan’s three largest banks — have expressed interest in participating. SK hynix, the South Korean chipmaker, is also preparing to join, according to SK Telecom. Samsung Electronics, GlobalFoundries and the Development Bank of Japan are among other potential participants reported by Japanese media.nhk

The fund is set to close its first round of investor recruitment soon and officially launch by the end of June.chosun

“We expect the fund will serve as an opportunity to connect the AI, ICT, semiconductor and network technology capabilities of East Asian countries, including South Korea and Japan, with the global innovation ecosystem,” SK Telecom said in a statement.letsdatascience