KT invests over $11 mn in AI software company Moreh

South Korea's KT Corp. will invest 15 billion won ($11.6 million) in Moreh, a Seoul-based artificial intelligence (AI) infrastructure software company. 

The telecom giant seeks to shake up the ecosystem for AI services and solutions dominated by the software of Santa Clara, California-based Nvidia through collaboration with companies possessing extraordinary AI know-how.

The company on Sunday announced the investment to accelerate its AI full stack operations, saying it will put up 10 billion won and affiliate KT Cloud 5 billion won. This is KT's second strategic investment in Moreh in two years.

AI full stack refers to AI infrastructure and application services like chips. KT said it will take a major step toward its goal of being a full-stack operator that simultaneously provides AI-related hardware and software given the difficulty of finding a company with an AI full stack worldwide.

KT added that it considers its latest investment an opportunity to strengthen its so-called AI full-stack alliance. In July last year, it invested 30 billion won in Rebellions, a Seongnam, Gyeonggi Province-based fabless company that designs AI semiconductors.

KT said it entered this sector to spur change in domestic AI infrastructure, which is heavily reliant on Nvidia. The latter company's graphics processing units (GPU) control close to 80% of the global market for computing infrastructure software needed to develop AI services.

Most AI services and solutions under development are based on the Nvidia software CUDA (Compute Unified Device Architecture), which is crucial for a GPU's AI operations.

"Applying Moreh's AI infrastructure software stack offers infrastructure software compatible with CUDA," a KT source said. "This can resolve reliance on and subordination to foreign GPUs."

In October, KT will release its hyperscale AI Mi:dm. It will also focus more on AI infrastructure by expanding its AI-based business-to-business services in a bid to roll out AI full-stack worldwide starting with the domestic market.

Write to Ji-Eun Jeong at jeong@hankyung.com