First external funding through convertible bond issuance Full-scale expansion of new businesses including AI infrastructure
Samsung SDS Tower. Provided by Samsung SDS
Samsung SDS is joining hands with global private equity firm Kohlberg Kravis Roberts (KKR) to expand investment in new businesses such as artificial intelligence (AI) infrastructure and stablecoins.
Samsung SDS announced on the 15th that its board of directors had resolved to issue KRW 1.2 trillion (about USD 820 million) in convertible bonds for strategic cooperation with KKR. This is the first external capital raising in the history of Samsung SDS. Convertible bonds are bonds that carry the right to be converted into shares and are used by companies as a channel to raise funds at relatively low interest costs.
The fundraising was carried out to strengthen the company’s global growth base in the information technology (IT) services market, which is being reshaped around AI. Samsung SDS plans to accelerate investment in AI infrastructure and enhance competitiveness in its AX (AI transformation) business, leveraging the newly raised funds and its existing cash and cash equivalents of KRW 6.4 trillion. A Samsung SDS representative said, “KKR plans to serve as a long-term advisor for six years in areas such as mergers and acquisitions (M&A), capital deployment, and the identification of global growth opportunities,” adding, “New businesses such as physical AI and stablecoins will also be actively pursued.”
In addition, Samsung SDS is accelerating the expansion of its domestic AI infrastructure business by promoting the establishment of the National AI Computing Center in Haenam, Jeollanam-do, targeted for completion in 2028, and the AI Data Center in Gumi, Gyeongsangbuk-do, scheduled for completion in 2029.
Existing system integration (SI) companies are thus accelerating the expansion of AI infrastructure. LG CNS last month also launched a “modular data center,” an AI data center that can be built in six months. Unlike conventional data centers that took about two years to construct, it is a small data center that accommodates 576 central processing units (CPUs) in a single container. An LG CNS representative said, “As the importance of data centers in the AI era grows, we are continuously expanding related businesses.”
Jeon Hye-jin
AI-translated with ChatGPT. Provided as is; original Korean text prevails.
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