KT to Invest in AI Chipmaker, AI Software Company

KT Group will invest 15 billion won in Moreh, a Korean artificial intelligence (AI) infrastructure software company. The company plans to make a major change in domestic AI service and solution ecosystems that rely on Nvidia’s software by joining forces with companies with unique technologies in the AI field.

KT announced on July 23 that it will invest 15 billion won (US$12 million) in Moreh to accelerate its full stack AI business. Of the 15 billion won, 10 billion will be invested by KT and 5 billion won by KT Cloud. This will mark the second time since 2021 that KT has made a strategic investment in Moreh.

“Full stack AI” is a term that encompasses infrastructure such as AI semiconductors and AI application services. KT wants to become a full stack business that provides AI-related hardware and software at the same time. Few companies in the world have full stack AI capabilities.

KT expects this investment to strengthen its AI full stack alliance. In July last year, the company invested 30 billion won in Rebellions, a fabless design company specializing in AI semiconductors. “Together with Moreh and Rebellions we are promoting the design and verification of next-generation AI semiconductors and collaboration on large-scale language models,” a KT official said. “We will be able to succeed by combining KT Group’s AI infrastructure and application services with Moreh’s AI semiconductor driving software and Rebellions’ AI semiconductor capabilities.”

KT’s decision to enter this business is based on its judgment that it is high time for the Korean AI infrastructure market, which relies on Nvidia, to change. Globally, the share of Nvidia’s graphics processing unit (GPU) in the computing infrastructure software market is close to 80 percent. Computing infrastructure software is required to develop AI services. Most AI services and solutions are built on Nvidia’s CUDA software. Without CUDA’s support, GPUs face limits in performing AI computations.

“The application of Moreh’s AI infrastructure software stack will provide infrastructure software that is compatible with existing CUDA,” the KT official added, “This way can eliminate dependency on foreign companies’ GPUs.” Ultimately, chip sets developed by fabless Korean AI semiconductor firms such as Rebellions will be easily applied to AI development environments. Once localization is in full swing, KT will be able to provide high-performance, lower-cost AI infrastructure to major Korean companies, colleges, and universities, KT said.

KT is planning to launch a super-sized AI named “Mideum” around October this year. It plans to expand its AI-based business-to-business services and focus more on its AI infrastructure business. It aims to present its full stack AI to the global market, starting with Korea.