In a significant move for AI development in Asia, SK Telecom and NVIDIA have announced plans to build a gigawatt-scale AI Cloud in South Korea, with operations set to begin in 2027. This ambitious project aims to deliver advanced training, inference, and agent-based workloads tailored for various sectors, including government, physical, and enterprise AI services.
A New Paradigm for AI Infrastructure
Unlike traditional cloud service providers that offer general-purpose capabilities, the AI Cloud will feature specialized AI factories designed to produce tokens, which are essential for deriving intelligence from data. SK Telecom intends to position this AI Cloud as a groundbreaking model, allowing businesses to use GPU-based cloud computing specifically optimized for AI workloads.
The infrastructure will utilize NVIDIA's DSX full-stack reference architecture, integrating software, hardware, and operational frameworks to ensure optimal performance. Jensen Huang, NVIDIA's founder and CEO, noted that telecom networks are becoming a vital part of national AI infrastructure. “They connect people, companies, devices and machines — and now they can become the backbone of new AI clouds,” Huang stated. This shift is seen as crucial for enhancing AI capabilities across diverse industries.
Strategic Partnership for AI Leadership
The collaboration between SK Telecom and NVIDIA is poised to reshape the AI landscape in Korea and beyond. Chey Tae-won, Chairman of SK Group, emphasized the strategic advantage gained through their partnership with NVIDIA, focusing on their commitment to addressing challenges related to GPU, memory, and energy. “Through our close partnership with NVIDIA, we have now secured full-stack AI infrastructure capabilities, from chips to data center operations,” he remarked, highlighting their ambition to become a leading player in Asia’s AI ecosystem.
As part of this initiative, SK Telecom will join NVIDIA's Cloud Partner program, providing access to advanced AI infrastructure and a developer ecosystem. This collaboration aims to improve AI performance and economics, ultimately driving the growth of AI cloud services across the region.
Implications for the Future of AI in Asia
The establishment of this AI Cloud in South Korea carries significant implications for the future of AI technology across Asia. By creating an infrastructure tailored specifically for AI workloads, SK Telecom and NVIDIA are not only enhancing the capabilities available to businesses in Korea but also setting a standard for neighboring countries to emulate. The partnership is expected to spur further advancements in AI applications, potentially leading to a more interconnected and efficient regional AI environment.
As the project moves toward its 2027 launch, many will be observing closely to see how this initiative impacts the broader AI market, particularly regarding innovation, investment, and collaboration among key players in the field.
The stories that move AI & crypto markets — before the market reacts.
Free. 7am ET. Five stories. 62,400 readers.
