SK Networks (001740.KS) will invest an additional 20 billion won ($14 million) in Upstage, a South Korean artificial intelligence unicorn.
SK Networks said in a regulatory filing on the 13th that it had decided to acquire 36,428 Upstage shares in cash for 20 billion won.
The company said it is joining the Series C-2 funding round at Upstage, an affiliate, with the aim of strengthening its AI business capabilities and creating business synergies.
The share purchase is scheduled for Nov. 30. After the acquisition, SK Networks will hold a total of 465,075 Upstage shares, for an expected stake of 11.5%. The actual stake could change during the process, the company said.
Upstage is a homegrown AI startup founded in 2020 by Kim Sung-hoon, a professor at the Hong Kong University of Science and Technology who previously led artificial intelligence development at NAVER.
Upstage became the first South Korean AI software company to reach unicorn status, and is competing in a three-way race with SK Telecom and the LG AI Research Institute in the government-led project to develop a homegrown AI foundation model.
An SK Networks official said the company plans to strengthen its partnership with Upstage through the transaction and boost the competitiveness of its AI-focused businesses.