SK Telecom invests $200M in data center platform, computing providerSK Telecom invests $200M in data center platform, computing provider

SKT will invest $200M in SGH by acquiring 200,000 preferred shares. The companies aim to cooperate closely in "AI factory and data center solutions and services, advanced memory market products and services, and NPU-based AI edge servers."#pressrelease

July 15, 2024

1 Min Read

SK Telecom (SKT) signed a definitive agreement to invest USD$200 million in SMART Global Holdings, Inc. (SGH), a leading designer and developer of high-performance, high-availability enterprise solutions.

Additionally, SKT and SGH intend to leverage their complementary capabilities to enhance customer offerings in the development of differentiated global end-to-end AI factory and data center solutions and services, advanced memory market products and services, and NPU-based AI edge servers.

 Under the terms of the agreement, SKT will invest USD$200 million in SGH by acquiring 200,000 preferred shares. The 200,000 preferred shares are convertible into ordinary shares of SGH at a conversion price of $32.81 per preferred share, subject to adjustment upon the occurrence of certain events.

 Headquartered in Milpitas, California (US), SGH offers specialized platforms and services for high-performance computing, AI, machine learning, fault-tolerant computing, and the Internet of Things that span the continuum of edge, core, and cloud. Through its Penguin Solutions business, SGH provides integrated AI data center solutions ranging from the design of AI clusters consisting of large-scale GPU servers to the expertise in data center deployment and operation.

 SKT and SGH plan to enter into a collaboration this year with an emphasis on establishing a more concrete cooperation across the AI infrastructure business, including AI data center, edge AI, and future memory solutions.

 SKT's current AI-related investments and partnerships include Anthropic, Lambda, and Perplexity. Along with these investments, the alliance with SGH is expected to solidify SKT’s position in the AI value chain across the three pillars: AI semiconductor, AI infrastructure and AI services.

SK Telecom

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