NTT to Launch Fund to Promote IOWN Infrastructure Globally

Tokyo, June 10 (Jiji Press)–NTT Inc. said Wednesday that it will establish an investment fund this month to globally promote the IOWN next-generation communication infrastructure using optical technology. The fund is expected to total some 80 billion yen, with participation from South Korean and Taiwanese firms and others. The IOWN infrastructure enables high-volume data communications with low latency and power consumption. NTT will promote its practical use, such as connecting data centers, amid the evolution and spread of artificial intelligence technology. South Korean conglomerate SK Group, Taiwanese telecommunications giant Chunghwa Telecom Co., the Development Bank of Japan, and U.S. venture investor Young Sohn will participate in managing the fund. A firm to manage the fund will also be established this month, with offices in Silicon Valley and Tokyo. The fund is expected to invest in startups in North America, Asia, and Europe that develop optical communication technology and semiconductors for AI. NTT will contribute about 20 pct of the fund. Additionally, more than 20 domestic and foreign companies, including Japan’s three megabanks, have expressed interest in the fund. “We want to contribute to the formation of a new industrial foundation that supports the AI age,” NTT President and CEO Akira Shimada told a news conference in Tokyo on Wednesday. END [Copyright The Jiji Press, Ltd.]