There are busy roads forward however the synthetic intelligence business will finally flourish, opening up new markets, the pinnacle of South Korea’s second-largest enterprise group, SK Group, mentioned, urging his staff to organize for a brand new leap with AI.
“ Leveraging AI. That is how we will survive this new ecosystem,” mentioned Chey Tae-won, chairman of SK Group, at a city corridor assembly with staff held Wednesday on the sidelines of the corporate’s annual discussion board referred to as Icheon Discussion board held from August 19 to 21.
He famous that companies benefiting now are these within the AI worth chain, and Huge Tech firms will not be shy about making enormous investments to guide the AI race.
“Uneven roads are to be anticipated however there isn’t a doubt that the AI business is on the rise,” mentioned the principal. “The AI growth will permit SK to do {hardware} enterprise for AI knowledge facilities and develop associated service fashions resembling giant language fashions (LLMs).
“As soon as the (proper) enterprise mannequin is in place, the (AI) business will develop in its personal enterprise cycle,” added Chey.
SK Group manages a whole lot of firms throughout 4 fundamental sectors – semiconductors and supplies, power and chemical compounds, data and communication know-how and logistics, service and bio.
Of those, its SK Hynix Inc. reminiscence chip enterprise. leads the excessive bandwidth reminiscence (HBM) chip market, which has expanded quickly in recent times according to the progress of the AI business.
However the constructive impression of the AI increase is anticipated to trickle all the way down to different sectors past the chip business, Chey mentioned.
SK On’s battery plant within the US state of Georgia (Courtesy of SK On)
“Huge Tech firms share the view that they might want nuclear energy later to cowl giant quantities of power that an AI knowledge middle will use,” Chey mentioned. “Any modifications within the power combine (pushed by Huge Tech’s AI transformation) will unlock alternatives for us.”
He met with the heads of Huge Tech firms together with Nvidia Corp., Taiwan Semiconductor Manufacturing Firm Ltd. (TSMC), OpenAI, Microsoft Corp. and Amazon.com Inc. throughout his current international enterprise journeys.
Coaching and deploying AI requires enormous quantities of computing energy and knowledge storage, which means that knowledge facilities use much more electrical energy than earlier than.
SK Group owns SK Innovation Co., Korea’s main oil refiner and battery maker, and 10 different energy-related associates.
“Each AI-driven change is a chance for us,” Chey mentioned, encouraging staff to hunt the suitable route that may lead the corporate to a promising future.
The group has been within the strategy of streamlining its enterprise portfolio to deal with core models resembling semiconductors and batteries amid ongoing financial uncertainty.
Write to Hoon Sung sang at uphoon@hankyung.com
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