SK Telecom, Japan's NTT launch $500M IOWN AI Fund

SK Telecom and Japan's NTT are joining forces to create a $500 million (approximately 760 billion won) AI investment fund, with SK Hynix, Sony, Toshiba and other global companies also set to participate.

The initiative aims to forge economic and technological ties between South Korea and Japan while accelerating the expansion of a next-generation AI ecosystem.

SK Telecom announced the fund Wednesday at a press conference held at NTT's headquarters in Otemachi, Tokyo, alongside NTT and Taiwan's Chunghwa Telecom. The three companies said they will jointly establish the IOWN AI Fund to invest in next-generation AI technologies.

The three companies plan to set up Catalight Capital, a fund management firm based in Silicon Valley and East Asia, to build a global fund management framework.

SK Telecom said the fund's formation is significant because it marks the first time leading East Asian ICT companies have joined forces to collectively expand the AI ecosystem.

The IOWN AI Fund will invest in promising startups across five areas: AI data center infrastructure, including power efficiency optimization and liquid cooling; AI semiconductors such as AI accelerators, GPUs and NPUs; AI service applications across industries including healthcare, manufacturing and finance; AI software for cloud distributed systems and inference optimization; and optical communications technology to improve data transmission performance and power efficiency. Target companies will be drawn from North America, Asia and Europe.

Beyond financial investment, participating firms will support portfolio companies with technology validation, service enhancement and customer development, with the goal of creating new business models and growing together.

The fund plans to close its first round of investor recruitment soon and officially launch. NTT said approximately 20 global companies, including Sony and Toshiba, have expressed interest in joining as investors. SK Hynix is also preparing to participate.

SK Telecom said it plans to use the fund as a springboard for broader Korea-Japan economic and technological cooperation, extending beyond borders into AI data centers, business-to-business services and consumer services.

NTT CEO Akira Shimada said realizing AI-native infrastructure requires combining cutting-edge technologies and partners from around the world. He added that the company will pursue business partnerships with promising startups and work to create new industrial foundations.

Chunghwa Telecom President Lin Rongtz said the company will support global startups through cross-border business development built on its telecommunications expertise. He pledged to accelerate the commercialization of advanced technologies and build a next-generation AI ecosystem alongside its partners.

SK Telecom CEO Jeong Jae-heon said the company has not only made early investments in numerous global AI firms but has also nurtured promising startups at home and abroad to build an AI ecosystem. "Based on these successful experiences and SK Group's competitiveness, we will continue to expand opportunities for collaboration with AI innovators," he said.

Meanwhile, SK Telecom is broadening its global AI infrastructure push on multiple fronts, including a plan with Nvidia to build a gigawatt-scale "AI factory" targeting operation in 2027.