SK Telecom is partnering with the American GPU-as-a-Service company Lambda to open an AI data center in Seoul this December. They will be deploying Lambda’s NVIDIA GPU resources at SK Broadband’s Seoul Gasan data center. SK Telecom plans to expand the GPUs to thousands within three years in the AI data center.
On the 21st, SK Telecom announced the establishment of a partnership with Lambda for “AI Cloud Joint Business.” The two companies agreed to strengthen strategic collaboration in various areas such as expanding the GPUaaS business based on stable GPU supply and establishing Lambda’s Korean region.
Founded in 2012 by AI engineers, Lambda is a GPUaaS company that provides AI cloud services by sourcing the latest GPUs from NVIDIA. Global tech giants like Intel and Microsoft are among Lambda’s clients. According to foreign news sources such as Reuters, Lambda was valued at $1.5 billion in February and raised $320 million in funding, highlighting its rise as a promising AI company.
Recently, SK Telecom made a significant investment of $200 million in Smart Global Holdings, a leading U.S. integrated solution provider for AI data centers. This collaboration with Lambda enhances their GPUaaS competitiveness, accelerating their AI infrastructure business.
In December, SK Telecom and Lambda will deploy NVIDIA GPU H100s at SK Broadband’s existing data center located in Gasan-dong, Geumcheon-gu, Seoul.
Considering the rapid increase in domestic GPU demand that accompanies the growth of the AI market, SK Telecom aims to increase the number of GPUs to thousands within three years, while also pushing for early adoption of the latest GPU model, the H200. Their goal is to expand the largest “GPU Farm” in Korea, constructed solely with NVIDIA GPUs, starting from this Gasan data center.
SK Broadband plans to leverage its data center operation expertise to provide a data co-location environment optimized for high-density GPU server operations. They intend to achieve a power density per rack in the Gasan data center at the top level in Korea, which is set to reach 44kW—approximately nine times the national average of 4.8kW.
- Data Center Co-location: A service where a data center specialist leases space like computer rooms and manages and operates customer equipment.
SK Telecom plans to launch a subscription-based AI cloud service called “GPUaaS (GPU-as-a-Service)” in December, leveraging Lambda’s GPU resources. GPUaaS allows corporate customers to rent virtual GPU resources through the cloud for developing or utilizing AI services, without having to purchase GPUs directly. This is particularly advantageous for large enterprises, small and medium-sized businesses, and startups that might find it financially burdensome to buy high-priced GPUs outright.
As a result, IT companies around the world are launching their own GPUaaS offerings, and the market is experiencing rapid growth. Market research firm Fortune Business Insights estimates that the global GPUaaS market will grow from $4.31 billion in 2024 to $49.84 billion in 2032, with an average annual growth rate of 35.8%.
In December, alongside the launch of GPUaaS, SK Telecom plans to introduce various promotions targeted at domestic startups and small to medium-sized enterprises, including GPU replacement compensation programs, cloud cost optimization consulting, and support programs for AI startups. More details can be found on the SK Telecom Enterprise website.
Stephen Balaban, CEO and founder of Lambda, stated, “Lambda and SK Telecom share a vision of creating an environment where GPU computing resources can be used as conveniently as electricity. I am pleased to partner with SK Telecom in Korea, which is accelerating AI cloud business growth due to its rapid pace of AI innovation.”
Kim Kyung-deok, head of SK Telecom’s Enterprise Division, remarked, “Securing stable GPU supply through our strategic collaboration with Lambda is significant in expanding the domestic GPU supply. We will work hard to build the largest GPU farm in the country, enhancing national AI competitiveness and establishing a foothold for entry into global markets.”
Lee Sang-jin daedusj@autodiary.kr