On June 10th, NTT announced the establishment of “IOWN AI Fund,” a fund to invest in AI startups. More than 20 companies are considering investment, and the fund is expected to reach a size of approximately 80 billion yen.

(Photo: Logo image of “IOWN AI Fund / Catalight Capital” / Source: NTT news release)

The investment targets will encompass all technologies supporting the foundation of AI, including semiconductors for AI calculations, cooling technologies to reduce power consumption in data centers, software that efficiently runs AI, and AI-based services in the medical, manufacturing, and financial sectors. The fund will primarily invest in mid-stage startups in the practical application and commercialization phases, focusing on companies in North America, Asia, and Europe.

The fund will be jointly established with renowned US investor Young Sohn, South Korean conglomerate SK Group, Taiwan’s largest telecommunications operator Chunghwa Telecom, and the Development Bank of Japan. A new company, “Catalight Capital,” will be established in Silicon Valley, USA, and Tokyo, USA, to manage the fund. Companies expressing interest in investing include Fujitsu, KDDI, NEC, Sony Group, as well as Samsung Electronics of South Korea and GlobalFoundries of the United States.

IOWN is a next-generation network infrastructure being developed by NTT. NTT President Akira Shimada pointed out that the importance of infrastructure is increasing with the spread of AI, and stated, “Through the IOWN AI Fund, we will promote business collaborations with promising startups and build the IOWN ecosystem with global partners.”