SK Hynix, South Korea’s second-largest chip maker after Samsung, will make investments $74.6 billion over the subsequent three years to develop reminiscence chip applied sciences targeted on synthetic intelligence (AI).
Guardian firm SK Group may also search a further $57.8 billion to additional fund its AI efforts via 2026, in response to a Reuters report.
Synthetic intelligence
In keeping with the report, SK Group has lately “suffered severe losses” via Hyinx and its automotive battery subsidiary. The large funding, if the latter is secured, could be practically $133 billion — based mostly on the businesses’ market capitalization, Sk Hyinx alone has a market cap of about $118 billion as of this writing.
It’s clear that SK Group views the spending and elevated concentrate on the event of synthetic intelligence applied sciences as a technique to offset the reported losses and strengthen the corporate’s monetary future.
The shift to synthetic intelligence may also enable the group to optimize its operations. SK Group is predicted to wind down its subsidiaries from the present variety of “over 175” to one thing extra in keeping with the group’s present objectives and ambitions.
Competitors
The world of synthetic intelligence is extremely aggressive on the enterprise stage, with massive retailers similar to Google, Microsoft and Nvidia taking the lion’s share of the enterprise. However the semiconductor market is considerably extra aggressive.
Whereas Microsoft, Nvidia and Apple proceed to battle it out for the place of the world’s most respected firm, the marketplace for chipmakers extends far past Silicon Valley.
As extra tech firms enter the AI area and large tech continues to push the envelope, demand for chips (notably these able to coaching AI programs) has skyrocketed and led to a world scarcity.
SK Group reportedly believes its present funding technique will enhance income from a projected $16 billion in 2024 to almost $30 billion by the tip of 2025.
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