KT Group's Strategic Push: Investing in Moreh for AI Advancement

KT (NYSE: KT) Group announced a significant investment of KRW 15 billion (US$11.7 million) in Moreh, an AI infrastructure software company, as part of its strategic move to strengthen its full-stack AI business.

KT's second investment in Moreh demonstrates a growing commitment to supporting domestic technology and reducing reliance on global vendors.

Why It Matters: KT Group's investment in Moreh, an AI infrastructure software company, signals an approach to improving domestic technology in AI and reducing reliance on global technology solutions.

The Key Points

• KT Group invests KRW 15 billion (US$11.7 million) in Moreh, marking its second investment.
  
• Nvidia's GPUs currently account for nearly 80% of AI service development infrastructure, with most AI services developed using Nvidia's CUDA software.
  
• Moreh provides AI infrastructure software designed to reduce the dependency on global GPUs like Nvidia's.
  
• Their solutions, including the software stack and AI cluster/cloud services, create a comparable environment to Nvidia's CUDA.
  
• In 2021, KT will launch Hyperscale AI Computing (HAC), a GPU service integrating Moreh's technology with KT's cloud infrastructure.

The Big Picture: The KT Group's strategic focus on AI includes a commitment to products and services that span the entire AI development process.

This includes everything from basic infrastructure, such as AI semiconductors and cloud services, to end-user AI application services.

The partnership with Moreh and subsequent solutions, such as the HAC service, is a step in this direction.

KT plans to accelerate its AI infrastructure business along with AI-based B2B services, such as the launch of AI giant AI 'MIDEUM' in the year's second half.

In addition, KT Group has outlined plans to invest KRW 2 trillion by 2027 to support startups in South Korea.