SK HERCULES REBUTS THE CONCERNS ABOUT THE SLOWDOWN IN AI: IT WILL REMAIN ROBUST AFTER NEXT YEAR

ON 29 JULY, THE SK HERCULES (SKHY.O) STATED AT A TELECONFERENCE IN THE SECOND QUARTER: “WE NOTE THAT THERE ARE CONCERNS THAT AI INFRASTRUCTURE INVESTMENT MAY SLOW, AS SOME MAJOR TECHNOLOGY COMPANIES ARE REVISITING DATA CENTRE LEASING AND THE EMERGENCE OF EFFICIENT AI MODELS. WE BELIEVE THAT THESE INITIATIVES ARE NOT A PROCESS OF REDUCING AI'S INVESTMENT, BUT RATHER OF INCREASING ITS UTILIZATION AND ACCELERATING THE MONETIZATION OF LARGE AI INFRASTRUCTURE.” ACCORDING TO SK HERCULES, THE SPREAD OF THE EFFICIENT AI MODEL IS UNLIKELY TO LEAD TO A DECLINE IN DEMAND FOR INFRASTRUCTURE AND MEMORY. AS MODELS AND SYSTEMS BECOME MORE EFFICIENT, MORE USERS CAN ACCESS SERVICES ON THE SAME INFRASTRUCTURE, THUS INCREASING THE ACCESSIBILITY AND COVERAGE OF AI SERVICES. GIVEN THAT EVEN THE RECENTLY LAUNCHED EFFICIENT AI MODEL HAS AN EXPLOSIVE USER DEMAND, EFFICIENCY GAINS ARE PROMOTING UNIVERSAL ACCESS TO SERVICES AND INCREASING OVERALL USAGE. ACCORDING TO SK HERCULES, THE SUSTAINABILITY OF AI ' S INVESTMENTS WAS ALSO RECOGNIZED IN MEDIUM- AND LONG-TERM DEMAND NEGOTIATIONS WITH KEY CLIENTS. IT IS BELIEVED THAT AI INFRASTRUCTURE INVESTMENTS WILL REMAIN ROBUST BEYOND NEXT YEAR. KIM XIAN