SKT, NTT, Chunghwa Launch $500M AI Fund for Global Startups

SKT, NTT, Chunghwa Telecom Launch $500M AI Fund

SK Telecom, in collaboration with Japan’s NTT and Taiwan’s Chunghwa Telecom, announced the establishment of a $500 million artificial intelligence (AI) investment fund. This significant cross-border initiative by three major East Asian telecommunications companies aims to accelerate the global AI ecosystem by targeting innovative startups and technology companies worldwide.

The joint venture was unveiled at a press conference held at NTT’s headquarters in Tokyo. The fund, officially named the IOWN AI Fund, draws its name from NTT’s Innovative Optical and Wireless Network initiative, underscoring its focus on advanced communication and AI integration.

A newly formed entity, Catalight Capital, will manage the fund. Jointly owned by the three telecom firms, Catalight Capital will operate from strategic locations in Silicon Valley and East Asia, facilitating a broad geographical reach for its investment activities.

With a target of $500 million in total commitments, the IOWN AI Fund plans to deploy capital into startups and technology companies across North America, Asia, and Europe. This geographic diversification is designed to capture leading-edge innovations globally.

Investments will be concentrated in five critical technological areas. These include AI data center infrastructure, focusing on power efficiency and liquid cooling solutions, and AI semiconductors, encompassing accelerators, GPUs, and NPUs. The fund will also target AI service applications across sectors like healthcare, manufacturing, and finance.

Further investment areas include AI software, particularly for cloud distributed systems and inference optimization, and optical communications technologies. The latter is crucial for enhancing data transmission capabilities and improving energy efficiency within AI frameworks.

The participating companies emphasized that their involvement extends beyond mere financial investment. They intend to provide portfolio companies with crucial support in technology validation, service development, and customer acquisition, leveraging their extensive industry expertise and market access.

NTT has indicated substantial interest from other major corporations. Approximately 20 prominent global firms, including electronics giants Sony and Toshiba, have expressed interest in becoming limited partners in the fund. South Korean memory chip maker SK hynix is also reportedly preparing to join the initiative.

The fund is expected to achieve its first close and formally launch in the near future. This milestone will mark the official commencement of its investment activities, contributing to the accelerating global competition for AI infrastructure.

SK Telecom CEO Jeong Jae-heon highlighted the company’s established history in building its AI ecosystem. He noted previous early investments in global AI firms and the nurturing of domestic and international startups. Jeong stated that this track record and the strength of the SK Group would facilitate expanded collaboration opportunities with AI innovators globally.

Akira Shimada, President and CEO of NTT, underscored the strategic importance of integrating global cutting-edge technologies and partnerships. This integration is vital for realizing AI-native infrastructure, according to Shimada, who affirmed NTT’s commitment to forming business partnerships with promising startups and establishing new industrial foundations.

Chunghwa Telecom President Rong-Shy Lin stated that his company would leverage its telecommunications expertise to support global startups. This support, provided through cross-border business development, aims to accelerate the commercialization of advanced technologies and foster the development of a next-generation AI ecosystem.

Beyond the investment objectives, SK Telecom also expressed its intention to use this fund as a basis for expanding economic and technological cooperation between Korea and Japan. This collaboration is particularly aimed at advancing areas such as AI data centers and both business-to-business and consumer AI services, strengthening regional ties.