Investing in Global Startups to Strengthen Next-Generation Technology Capabilities

SK Telecom, Hanwha Asset Management, and Hyundai Motor jointly establish the 'AI Alliance Fund' to invest in global startups with innovative technologies and creative ideas.

The 'AI Alliance Fund,' scheduled to launch in the first quarter of next year, will be formed with a total scale of $45 million (approximately 500 billion won), with each of the three companies contributing $15 million.

Additionally, Element AI, a Canadian AI solution company with world-class AI technology capabilities, will participate in an investment advisory capacity.

The three companies plan to utilize Element AI's excellent research personnel and global network to make investment decisions based on precise analysis of technological capabilities, market value, and growth potential.

Strengthening Next-Generation Technology Capabilities through Investment in Future Technologies including AI, Smart Mobility, and Fintech

Investment targets are promising startups in AI, smart mobility, and fintech-related sectors in the United States, Europe, and Israel.

The 'AI Alliance Fund' was established to proactively respond to rapidly changing domestic and international market environments driven by convergence technology revolution by discovering and investing in emerging startups with future value.

Beyond realizing basic investment returns, it aims to strengthen next-generation technology capabilities based on innovative technology information exploration from a future strategic perspective, global technology trend analysis, pioneering collaborative networks, and acquiring knowhow.


In particular, the 'AI Alliance Fund' draws attention in that three major groups leading the Korean economy and their key affiliates join hands with a global AI company to pursue the creation of future new growth engines.

As disruptive innovation competition intensifies across all industries, establishing an open innovation-based innovation ecosystem built on openness and cooperation is essential to lead the market and secure competitive advantage.

Additionally, synergy creation through the combination of ICT, financial network, and mobility-related expertise held by the three companies is expected to contribute to strengthening the business competitiveness of each company.

Each company plans to pursue internalization of future innovative technologies based on investments in global promising startups and continuously detect new business opportunities.

Additionally, under startup incubating and Corporate Venture Capital (CVC) operational strategies operated by each company, systematic support for invested companies will be actively pursued.

Element AI, an AI Expert Group, Provides Advisory Role… Analyzes Future Value including Technology Capabilities and Growth Potential

Element AI, which will serve as investment advisor, was co-founded by Professor Yoshua Bengio, a renowned global AI scholar at the University of Montreal in Canada.

Element AI is a startup specializing in general-purpose AI research, solution development, and consulting, with approximately 160 excellent AI researchers on staff.

Additionally, it maintains a rich human network in the AI academic field through exchanges of advice with master's and doctoral degree holders and professors specializing in AI from universities such as the University of Montreal and McGill University, which are leading AI technology worldwide.

In particular, it has secured large-scale investments from global ICT companies such as Microsoft, Intel, and NVIDIA and possesses global corporate networks and cooperation expertise by executing various collaborative projects.

Three Companies Create Synergy through Combination of ICT, Financial, and Mobility Expertise to Strengthen Business Competitiveness

SK Telecom is working to create and foster a 'New ICT' industrial ecosystem where diverse technologies, services, and infrastructure including AI and IoT are shared to create new value.

This joint investment also aims to lead the Fourth Industrial Revolution by fusing SK Telecom's leading ICT capabilities with corporate competitiveness in various industrial sectors based on openness and cooperation, and sharing mutual infrastructure.

SK Telecom launched Korea's first AI service 'Nugu' and mounted it on T map, leading the Korean AI industry. Additionally, following the world's first development of a 5G connected car last year, the company launched 'Around Alliance,' an industry-academia autonomous driving consortium last month, pursuing the securing of core autonomous driving technology.

Hanwha Asset Management, managing net assets of 92 trillion won (as of October), is exploring potentially promising investment opportunities in the convergence of industrial technology and artificial intelligence technology based on investment expertise developed over time.

Combining investment expertise with technology expertise of co-investors (SK Telecom and Hyundai Motor) and strong AI expertise held by technology advisor Element AI, the company invests in excellent global technology startups.

Through this, the company plans to connect synergy creation from joint investment, accumulated experience in global startup investment, and experience in new technology evaluation and discovering new investment destinations to new overseas asset commercialization and strengthened operational capabilities. Additionally, based on fintech, the company aims to upgrade internal capabilities through acquisition and implementation of new technologies in the financial sector and utilize them as a new growth engine.

Hyundai Motor is concentrating investment on securing global technology leadership in future technology fields and discovering new businesses for sustained growth.

This fund investment is also part of a future strategy to secure market-leading capabilities not only in future mobility services based on autonomous driving and connected cars but also in diverse areas such as smart cities, new energy, and robotics.

This month, Hyundai Motor opened 'Hyundai CRADLE,' a global innovation hub in future technology fields, in Silicon Valley and is pursuing future technology investment, new business and technology model verification, and enhanced collaboration. In September, the company formed the 'HTK Consortium' with Technion and KAIST universities in Israel and is devoted to next-generation new technology research and business model discovery.

Meanwhile, on the 16th morning at the Plaza Hotel in Seoul, a signing ceremony for the establishment of the 'AI Alliance Fund' was held with the attendance of Yoo Young-sang, Head of Strategic Planning Division at SK Telecom, Kim Yong-hyun, CEO of Hanwha Asset Management, Ji Young-jo, Head of Strategy and Technology Division at Hyundai Motor, and Jean-François Gagné, CEO of Element AI.

Jean-François Gagné, CEO of Element AI, who visited Korea to attend the signing ceremony in person, stated, "I am very pleased to participate in the effort to lay the foundation for a new global industry together with SK Telecom, Hanwha Asset Management, and Hyundai Motor," and added, "I hope that mutually beneficial cooperative relations will continue by exploring new business opportunities on the occasion of this opportunity."