SK Networks Invests 25 Billion KRW in AI Solution Startup

CES Secures Series B Investment with 'Upstage'
Supports Overseas Expansion... Aims for Synergy with Subsidiaries

SK Networks, expanding from a general trading company to an AI business investor, is investing 25 billion KRW in an AI solution development startup.

On the 11th (local time), SK Networks announced that it held a Series B investment signing ceremony with AI solution development startup Upstage at CES 2024, the world's largest electronics and IT exhibition held in Las Vegas, USA.

Upstage is a company that provides customer-specific solutions based on generative AI. It is evaluated to have strengths in offering large language models (LLM) tailored more closely to customers. It has secured clients in various sectors including government ministries, finance, IT, and e-commerce by utilizing only internal corporate data to train customized LLMs.

In December last year, Upstage's self-developed small language model "Sola" ranked first in the open LLM leaderboard evaluation operated by Hugging Face, the world's largest machine learning platform. It also became the first Korean AI startup to accumulate 10 gold medals in the Kaggle competition, known as the "AI Olympics."

SK Networks explained that it decided on this investment considering Upstage's technological competitiveness, the growth potential of the AI industry, and synergy possibilities with its headquarters and investors. In particular, it expects synergy with its recently acquired subsidiary, data management and solution company "Encora." The two companies plan to expand their customer base and promote technological convergence.

An SK Networks official said, "We plan to support Upstage to grow into a global leading company in the LLM industry beyond Korea by utilizing SK Networks' global network built through investments in domestic and international technology companies," adding, "We will continue to promote investment and cooperation in the AI industry to expand the AI ecosystem and increase corporate value."