Date: 23 September 2024
Broker: OCBC Investment Research (OIR)

AI Integration with NVIDIA Partnership

Singapore Telecommunications (Ticker: ST SP) is making significant strides in integrating AI into its business operations through a collaboration with NVIDIA. As part of its support for Singapore’s National AI Strategy 2.0 (NAIS 2.0), Singtel has partnered with NVIDIA to construct accelerated computing data centers (DCs) that utilize NVIDIA’s advanced Hopper architecture-based GPUs. This partnership highlights Singtel’s commitment to enabling AI-driven innovation by providing high-performance computing resources for enterprises across multiple sectors.

GPU-as-a-Service (GPUaaS)

A key initiative from this partnership is Singtel’s introduction of GPU-as-a-Service (GPUaaS). This service aims to democratize access to AI tools by offering customers the ability to leverage Singtel’s fixed broadband network, submarine cables, and 5G network infrastructure. By enabling businesses to manage AI workloads across various networks and cloud environments via Singtel’s patented Paragon cloud platform, the company is positioning itself as a leader in AI-powered services. This initiative also plays a critical role in supporting enterprises to adopt AI technologies efficiently and cost-effectively.

Expanding Data Center Capacity

Singtel plans to operationalize over 200MW of data center capacity by the end of 2026, with an initial focus on Singapore and subsequent expansions into Thailand, Malaysia, and Indonesia through strategic partnerships. The expansion of data center capacity is a core part of Singtel’s growth strategy as AI adoption continues to rise in Southeast Asia. This capacity will be essential for supporting AI workloads and other computationally intensive processes for its customers.

Collaboration with SK Telecom for Edge-AI Solutions

In July 2024, Singtel signed a memorandum of understanding (MoU) with South Korean mobile carrier SK Telecom to develop innovative solutions utilizing Edge-AI infrastructure. Edge-AI leverages AI inference at the edge of the network, reducing the computational burden on cloud services. This collaboration aims to enhance connectivity, deliver unique AI service offerings, and improve customer experiences, such as faster service restoration. Singtel’s focus on Edge-AI solutions is part of its broader strategy to stay at the forefront of AI innovation in telecommunications.

Long-Term Growth through AI-Driven DC Segment

As Singtel reinvigorates its core business, its growing data center (DC) segment is seen as a crucial driver of scalable long-term growth. By aligning its offerings with the increasing demand for AI capabilities and cloud services, Singtel aims to solidify its position as a key AI enabler in the region. The company’s strategic investments in AI-powered infrastructure and services underscore its commitment to leveraging AI for future business growth.