SK Telecom Goes 'AI Native'

This 'AI Native' transformation is backed by a significant financial commitment, with SK Telecom planning to invest ₩5 trillion (approximately $3.5 billion) in its AI-related businesses over the next five years. The company has set an ambitious goal of generating ₩5 trillion in annual AI revenue by 2030. At the core of this strategy is a massive build-out of AI-specific infrastructure. The company is developing hyperscale AI data centers, including a facility in Ulsan that will be expanded to a 1-gigawatt capacity. This infrastructure will be powered by cutting-edge hardware, including a plan to acquire over 2,000 NVIDIA RTX Pro 6000 Blackwell GPUs to create a "Manufacturing AI Cloud". The company is developing its own proprietary large language model, "A.X K1," a hyperscale AI model with 519 billion parameters. This in-house development is complemented by strategic partnerships with global AI leaders. SK Telecom has an exclusive business-to-consumer partnership with OpenAI in South Korea and is also collaborating with Anthropic to develop a telecom-specific LLM. This AI overhaul extends to the very structure of the company, with the creation of an independent in-house unit called "AI Company-in-Company" (CIC) to consolidate all AI-related businesses and accelerate innovation. The strategy also involves a cultural shift, with a plan for every employee to use at least one AI agent in their work, aiming to embed AI into all internal processes. The network itself is being re-engineered to be "AI-native." A key component is the development and application of AI-RAN (Radio Access Network) technology, which uses AI to autonomously optimize wireless network quality and traffic. This is part of a longer-term vision for 6G, where the network is designed from the ground up to support and integrate with AI services. Newly appointed CEO Jung Jai-hun is spearheading this transformation, emphasizing that the goal is to innovate customer value and adapt to the new era of AI. This includes redesigning everything from billing systems to customer relationship management to be AI-centric and hyper-personalized. The strategy also aims to position South Korea as a major AI hub in Asia. By building out its AI data center infrastructure and fostering a domestic AI ecosystem, SK Telecom intends to attract global investment and talent. The company is actively supporting South Korean AI and ESG startups, showcasing them at global events like MWC26 to connect them with European venture capital. This AI transformation is not just about internal efficiency; it's about creating new revenue streams beyond traditional telecommunications. SK Telecom is looking to offer AI-as-a-service (AIaaS) and provide the foundational infrastructure for other industries to build upon, including leveraging their Manufacturing AI Cloud for SK Group's affiliates like SK hynix.