Penguin Solutions Signs AI Data Center Collaboration Agreement with SK Telecom and SK hynix

Rhea-AI Summary

Penguin Solutions (PENG) has entered into a strategic collaboration agreement with SK Telecom (SKT) and SK hynix to develop and deliver comprehensive AI data center solutions. This follows SKT's recent $200 million strategic investment in Penguin Solutions.

The collaboration aims to enhance Penguin Solutions' ability to deliver AI infrastructure solutions to new markets, focusing on developing high-performance accelerated computing technologies. The partnership combines Penguin Solutions' OriginAI® and Scyld ClusterWare® software with SKT's AI infrastructure management software to improve AI compute cluster utilization and deployment.

Additionally, SK hynix and SMART Modular Technologies plan to collaborate on developing innovative memory solutions for accelerated compute environments. Penguin Solutions brings over 25 years of experience in HPC, with more than 85,000 GPUs deployed and 2 billion hours of runtime data.

Positive

• Recent $200 million strategic investment from SK Telecom
• Partnership expands market reach and technological capabilities
• Integration of complementary technologies for enhanced AI infrastructure solutions
• Track record of 85,000 GPUs deployed and 2 billion hours of runtime data

Negative

• None.

Insights

Technology Strategist

This strategic collaboration between Penguin Solutions, SK Telecom and SK hynix represents a significant development in the AI infrastructure space. Following SKT's $200 million investment, this partnership creates a powerful alliance combining Penguin's AI infrastructure expertise, SKT's management software and SK hynix's semiconductor capabilities. The integration of Penguin's OriginAI® and Scyld ClusterWare® with SKT's infrastructure management tools should create a more efficient, full-stack AI deployment solution.

A key technical advantage lies in the potential for optimized memory solutions through SK hynix and SMART Modular Technologies collaboration. This could address critical bottlenecks in AI compute clusters, particularly in power efficiency and heat dissipation - two major challenges in modern AI data centers. With Penguin's track record of 85,000 GPU deployments and 2 billion hours of runtime data, this partnership is well-positioned to tackle complex AI infrastructure challenges.

Market Research Analyst

The timing of this collaboration is strategically significant given the explosive growth in AI infrastructure demand. This deal positions Penguin Solutions (PENG) to expand its geographic reach and market presence, particularly in Asian markets where SK Group has strong influence. The partnership leverages complementary strengths: Penguin's proven AI infrastructure expertise, SKT's telecommunications reach and SK hynix's semiconductor manufacturing capabilities.

For investors, this represents a potential catalyst for growth, building upon the recent $200 million strategic investment from SKT. With a market cap of $1.02 billion, this alliance with two major South Korean tech giants could significantly enhance Penguin's competitive position in the rapidly growing AI infrastructure market. The focus on efficiency and performance optimization in AI data centers addresses a critical market need, potentially leading to increased market share and revenue opportunities.

Collaboration expected to provide technology and capabilities to deliver comprehensive AI data center solutions and services to expanded geographic regions

LAS VEGAS--(BUSINESS WIRE)-- Penguin Solutions, Inc. (Penguin Solutions; Nasdaq: PENG) today announced it has entered into a strategic collaboration agreement with SK Telecom (“SKT”) and SK hynix to pursue the development and delivery of comprehensive AI data center (“AIDC”) solutions. The agreement, signed during CES 2025 in Las Vegas, follows the December closing of SKT’s $200 million strategic investment in Penguin Solutions as the AI infrastructure market continues to gain traction across a broad array of industries.

Photo L to R: Ju Seon Kim, President AI Infrastructure SK hynix; Young Sang Ryu, President and CEO SK Telecom; and Mark Adams, President and CEO Penguin Solutions join hands after the signing ceremony at CES to celebrate entering into a strategic collaboration agreement to pursue the development and delivery of comprehensive AI data center solutions. (Photo: Business Wire)

Partnering with SKT and SK hynix is expected to enhance Penguin Solutions’ ability to deliver AI infrastructure solutions and services efficiently to additional markets and regions. The collaboration emphasis is on increasing each company’s ability to research, develop, and market high-performance, high-availability accelerated computing technologies and solutions.

Utilization rates of AI compute clusters is enriched through Penguin Solutions’ OriginAI^® solution architecture, which is based on Penguin Solutions’ Scyld ClusterWare^® intelligent management software. Penguin Solutions’ Scyld ClusterWare software, when combined with SKT’s AI infrastructure management software, can expand capabilities for simplified installation, deployment and optimization of a full-stack AI deployment that can be managed end-to-end by Penguin Solutions’ expert AI services team. Additionally, SK hynix and SMART Modular Technologies, a product brand of Penguin Solutions, plan to collaborate to develop innovative memory solutions that enhance efficiency and performance in accelerated compute infrastructure environments.

“We are committed to solve the complexity of AI by designing, building, deploying, and managing cutting-edge solutions that enable us to support our customers on their AI journeys,” said Mark Adams, president and CEO of Penguin Solutions. “This collaboration agreement reflects a shared vision of leveraging our companies’ combined strengths to deliver a broad portfolio of high-performance AI solutions to customers across the globe."

“This collaboration agreement lays the foundation for building globally competitive AI data centers,” said Ryu Young-sang, CEO of SK Telecom. “We will combine the unique technologies of SK Group, such as semiconductors, energy, cooling and memory, with cooperation from global companies to discover and develop a highly competitive AI infrastructure business model.”

“Innovation of semiconductor memory technology is essential for the efficient operation of AI data centers, with improving power efficiency and heat dissipation performance being a key challenge,” SK hynix said. “Through collaboration with SK Telecom and Penguin Solutions, we plan to overcome the limitations of memory technology and lead the expansion of the global AI ecosystem."

Penguin Solutions provides premiere AI infrastructure expertise with more than 25 years of designing, building, deploying, and managing HPC with a proven track record of more than 85,000 GPUs deployed and amassing 2 billion hours of runtime data. Since 2017, Penguin Solutions has built AI factories for some of the biggest names in tech along with major enterprises, government agencies and academic institutions. The company’s intelligent, intuitive cluster management software streamlines the administration and optimizes the availability of these computing resources, transforming raw hardware, network, and software resources into sophisticated high-performance AI and HPC clusters.

Penguin Solutions will be on display in the “Alliance Zone” of the SK Telecom booth #17726 at CES in the Central Hall of the Las Vegas Convention Center, January 7-10, 2025.

Penguin Solutions, Scyld ClusterWare, and SMART Modular Technologies are trademarks or registered trademarks owned within the family of companies owned by Penguin Solutions, Inc. All other trademarks are the property of their respective owners.

About Penguin Solutions

The most exciting technological advancements are also the most challenging for companies to adopt. At Penguin Solutions, we support our customers in achieving their ambitions across our computing, memory, and LED lines of business. With our expert skills, experience, and partnerships, we turn our customers’ most complex challenges into compelling opportunities.

For more information, visit https://www.penguinsolutions.com.

About SK Telecom

SK Telecom has been leading the growth of the mobile industry since 1984. Now, it is taking customer experience to new heights by extending beyond connectivity. By placing AI at the core of its business, SK Telecom is rapidly transforming into an AI company with a strong global presence. It is focusing on driving innovations in areas of AI Infrastructure, AI Transformation (AIX) and AI Service to deliver greater value for industry, society, and life.

For more information, please contact skt_press@sk.com or visit our LinkedIn page www.linkedin.com/company/sk-telecom.

About SK hynix

SK hynix Inc., headquartered in Korea, is the world’s top tier semiconductor supplier offering Dynamic Random Access Memory chips (“DRAM”), flash memory chips (“NAND flash”) and CMOS Image Sensors (“CIS”) for a wide range of distinguished customers globally. The Company’s shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxembourg Stock Exchange. Further information about SK hynix is available at www.skhynix.com, news.skhynix.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250109090038/en/

Penguin Solutions Contacts

Suzanne Schmidt

Investor Relations

(510) 360-8596

ir@sghcorp.com

Maureen O’Leary

Corporate Communications

(602) 330-6846

pr@sghcorp.com

SK Telecom Contacts

Mina Ryu

SK Telecom Co., Ltd.

+82 10 3740 5185

mnryu@sk.com

Minyoung Kim

SK Telecom Co., Ltd.

+82 10 6558 6441

my_k@sk.com

SK hynix Contact

Sooyeon Lee

SK hynix Inc.

+82 10 5292 3854

sooyeon0.lee@sk.com

Source: Penguin Solutions, Inc.

FAQ

What is the value of SK Telecom's investment in Penguin Solutions (PENG)?

SK Telecom made a $200 million strategic investment in Penguin Solutions, which closed in December.

What technologies will be combined in the PENG and SK Telecom collaboration?

The collaboration combines Penguin Solutions' OriginAI® and Scyld ClusterWare® software with SK Telecom's AI infrastructure management software.

How many GPUs has Penguin Solutions (PENG) deployed historically?

Penguin Solutions has deployed more than 85,000 GPUs, accumulating 2 billion hours of runtime data.

What is the main goal of the PENG, SK Telecom, and SK hynix collaboration?

The collaboration aims to develop and deliver comprehensive AI data center solutions, expanding market reach and enhancing technological capabilities.

What specific development plans do SK hynix and PENG's SMART Modular Technologies have?

They plan to collaborate on developing innovative memory solutions to enhance efficiency and performance in accelerated compute infrastructure environments.