Seoul: South Korea's SK Telecom Co. announced on Wednesday its partnership with major telecommunication operators from Japan and Taiwan to create a joint fund for investments in next-generation artificial intelligence (AI) technologies.

According to Yonhap News Agency, SK Telecom, Japan's NTT Inc., and Taiwan's Chunghwa Telecom Co. have agreed to establish Catalight Capital, a company that will manage the joint fund valued at approximately US$500 million. This fund will be created collaboratively by the three firms to focus on promising startups across North America, Asia, and Europe. The investments will cover various segments of the AI value chain, including cooling systems, AI chips, and AI service applications.

SK Telecom further revealed that chip giant SK hynix Inc. is preparing to join the initiative. The company expressed optimism about the fund, stating, "We expect the fund will serve as an opportunity to connect the AI, ICT, semiconductor, and network technology capabilities of East Asian countries, including South Korea and Japan, with the global innovation ecosystem."