Ryu Young-sang, CEO of SK Telecom, shared the AI Pyramid Strategy 2.0 and 2025 business strategy with members through the company intranet. Below is a summary of the CEO’s message to members.
Written by Ryu Young-sang, CEO of SK Telecom
Dear Team,
Amid rapid changes in the market and technology landscape, we have launched the “AI Pyramid 2.0” strategy to fully accelerate tangible results in our AI business from “monetizable AI” initiatives. The core of AI Pyramid 2.0 lies in break down the AI opportunity into two perspectives – demand and supply – to address the challenges in front of us.
Global telcos predominantly focus on the demand-side applications of AI. This involves integrating AI into networks to reduce operational costs and leveraging it for customer-facing marketing, thereby enhancing efficiency in telco operations. In essence, this represents the use of AI for Operation Improvement (O/I). On the other hand, supply-side AI refers to new growth areas powered by AI. To succeed in this field, it is essential to leverage the experience and capabilities gained as a demand-side AI user. And what connects and anchors these two perspectives is a highly advanced management system, ensuring seamless integration and alignment.
Although we have temporarily segmented the AI opportunity into demand-side and supply-side to address current challenges, our ultimate goal is integration. When the time comes for this convergence, SKT will have fully transformed into a true AI company.
Ryu Young-sang, CEO of SK Telecom(SKT) is explaining the AI Pyramid strategy to SKT employees at an internal event.
Creating Tangible Results in AI business with Monetizable AI
This year, we have drawn up concrete plans for our “AI Infra Super-Highway” strategy and created a lineup of AI Data Center Business Models (AI DC BM) that can satisfy various types of customer needs. Our GPUaaS (GPU as a Service), launched at the Gasan Data Center last December through a partnership with Lambda, is expected to drive rapid revenue growth. The AI data center offerings will cater to all customer requirements as à la carte (customizable solutions), including modular DCs for clients needing quick AI infrastructure deployment, dedicated DCs optimized for single clients with a focus on security, and hyperscale AI DCs for large-scale operations.
For the AI B2B business, we are targeting the AIX market by establishing a one-body structure with SK C&C. We will roll out “A. Biz,” which efficiently handles daily tasks such as meetings and reports, and A. Biz Pro, a tool usable in specialized fields such as legal and tax services, to SK affiliates within the year.
“A.” is quickly growing into Korea’s top AI service with 9 million subscribers. This year, with more sophisticated service, stronger partnerships, and expanded divergence, A. will evolve into a completely new agent and prove its business potential. A* (Aster), our newly launched beta service, is an AI agent developed for global markets. By collaborating with international telcos and local service providers—such as members of the Global Telco AI Alliance (GTAA)—we plan to expand its user base worldwide.
Enhancing AI Capabilities through ‘Self-strengthening’ and ‘Collaboration’
To successfully implement the AI Pyramid 2.0 strategy, the dual pillars of self-strengthening and collaboration are essential. We aim to strengthen our internal capabilities while strategically supplementing them through collaborative efforts.
A.X 4.0, now in its final stages of development, is a high-performance, high-efficiency Korean language-specialized LLM that rivals the capabilities of leading global LLMs. By the end of this year, we plan to further enhance its functionality by developing multimodal models and reasoning models.
Through the GTAA, we will further solidify AI cooperation and expand collaboration in LLM development, AI agents, and AI infrastructure. The K-AI Alliance will continue to grow by onboarding more startup members, fostering the Korean AI ecosystem through technical and business cooperation. In addition to our successful partnerships with global players such as Lambda, Anthropic, Penguin Solutions, and Perplexity, we are actively exploring new opportunities to explore preemptive investments and collaborations.
To accomplish this, we will build a culture and way of working that is more competitive, more resilient, and more flexible that is unique to SK Telecom. This will serve as the basis for maximizing our performance in AI and O/I performance.
Despite the many uncertainties lying ahead this year, SKT will achieve a renaissance through the execution of these strategies and the dedication of our members. AI and O/I will serve as the driving forces that will take SKT beyond its current level to become a true SUPEX (Super Excellent Level) company in the mid-to-long term. The year 2025 will be a critical year in proving SKT’s sustained growth.
One thing we must not forget throughout this journey is customer value. Even when our business was centered around telecommunications, and now as we transition into an AI company, customer trust has been and will be our most valuable asset. On March 31st, SKT’s anniversary, all executives participated in volunteer activities at Seoul Forest, including leaf cleanup and planting trees and donated the “Forest Connected by Books.” This was more than a simple CSR activity but rather an expression of our deep gratitude toward the customers and our society that have supported us, and an effort to strengthen the trust they have entrusted in us. Without the support of customers and society, innovation and growth would be impossible. Let us always remember that customers have been, are, and will always remain at the center of our business.
Thank you.
