November 21, 2024

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SK Networks' headquarters in central Seoul (SK Networks)

SK Networks said Friday it will commit $30 million in a $130 million fund formed by SBVA to invest in artificial intelligence startups. It is the second-largest investment among fund participants.

The SBVA-led fund -- Alpha Intelligence Fund -- plans to focus on investing in promising early-stage startups in the AI, robotics and deep tech fields.

SK Networks, a general trading affiliate of SK Group, which announced its vision as an AI company this year, plans to go beyond fund investment and business partnerships with promising early-stage companies in the AI sector.

“We are actively participating in funds raised by leading global venture capitals to strengthen our industry network and expand new business opportunities,” an SK Networks official said. “We leveraged our experience in AI and technology investments, and our collaboration with SBVA was built on mutual trust.”

SBVA began its business as a startup investment company under SoftBank Group and was acquired by The Edge Off last year. It is currently managing assets worth 2.5 trillion won ($1.8 billion).

SK Networks has maintained its partnership with SBVA by participating in a tech-focused fund since 2021. At the end of last year, the two sides co-hosted the “AI Wave 2023 Forum,” and they jointly invested in AI startups earlier this year.

Through the investment, the general trading firm expects to secure new business opportunities by leveraging the AI startup portfolio and network that SBVA has built globally, covering every sector from infrastructure to apps.

“This fund investment will help us evolve our company and establish a plan to further increase customer value by incorporating AI into the business models of SK Magic, Encore and Walkerhill Hotels and Resorts,” an SK Networks official said.

“We’ll focus our resources on AI to introduce new products and services, and continue to add economic and social value.”

By Jie Ye-eun (yeeun@heraldcorp.com)