• SK Telecom has been investing in AI companies for years
• Now it has set up an AI investment unit in the tax haven of the Cayman Islands
• It recently pledged to invest in 80 startups this year alone 

Seemingly in case it has another major success on its hands, SK Telecom has created a wholly owned investment unit called Forest AI Investment in the Cayman Islands, a tax haven, that it will use to take stakes in AI-related companies. 

In recent years, SKT has invested in multiple AI companies, one of which is generative AI (GenAI) developer Anthropic, a key AI partner for the South Korean company, in which SKT invested $100m in 2023. 

Since then, Anthropic has grown significantly and its valuation has soared – it is reportedly valued at about $380bn. As a result, SKT’s stake is now believed to be worth more than $1bn and if Anthropic goes through with plans for an initial public offering (IPO), which may happen this year, that stake could be worth much more again, possibly as much as $3bn, according to this Chosun Biz report.

With SKT doubling down on its AI plans and looking to invest in yet more emerging innovators that can help it with its international AI ambitions, while also providing a return on any investments made, the company has elected to set up Forest AI Investment in a jurisdiction that has no corporate or capital gains taxes. 

The unit was established as an investment firm last year, according to this SEC document (see page 14), and is owned by Atlas Investment, an international investment arm of SKT that was created in 2023. 

It’s worth noting that SK Telecom’s CEO Jung Jai-hun met with 15 startups at MWC26 earlier this month and said the South Korean operator plans to revitalise the South-east Asian country’s startup ecosystem in the next few years by becoming an AI partner to fledgling companies. The CEO pledged to provide support through various unspecified “methods” for 500 startups over the next five years, starting with 80 this year. 

According to Chosun Biz, Forest AI Investment has been set up with initial capital of 20bn won ($13.3m) as an initial placeholder. The new unit is being regarded as a vehicle that could not only invest in AI startups but also be used for joint investments in AI infrastructure and attract external capital injections. 

Meanwhile, SKT continues on its evolution path to becoming an AI company: Most recently it unveiled its ‘AI Native’ innovation strategy, a sovereign AI package, and a partnership with Schneider Electric and Supermicro to jointly develop “total solutions” for AI datacentres.

- Ray Le Maistre, Editorial Director, TelecomTV