SK Telecom (SKT) has signed a definitive agreement to invest USD 200 million in SMART Global (SGH), a top designer and developer of high-performance enterprise solutions. SKT and SGH plan to work together to improve customer offerings by developing unique global AI factory and data center solutions, advanced memory market products, and NPU-based AI edge servers.
As per the agreement, SKT will invest USD 200 million in SGH by acquiring 200,000 preferred shares. These preferred shares can be converted into ordinary shares of SGH at a conversion price of USD 32.81 per preferred share, with adjustments possible under certain circumstances.
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Based in Milpitas, California, SGH offers specialized platforms and services for high-performance computing, AI, machine learning (ML), fault-tolerant computing, and the Internet of Things (IoT) across edge, core, and cloud.
Through its Penguin Solutions business, SGH provides integrated AI data center solutions, from designing AI clusters to deploying and operating data centers. SKT and SGH plan to collaborate this year to strengthen their partnership in the AI infrastructure business, focusing on AI data centers, edge AI, and future memory solutions.
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SKT's current AI investments and partnerships include Anthropic, Lambda, and Perplexity, and teaming up with SGH is expected to enhance SKT's position in the AI value chain. Ryu Young-sang, CEO of SKT, stated that the investment in SGH will help SKT advance in the AI value chain and aim for global leadership in AI.
Mark Adams, CEO of SGH, expressed excitement about having SKT as a strategic investor and highlighted Penguin Solutions' capabilities in deploying AI factories at scale. Both companies look forward to collaborating and creating value for their stakeholders.
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