[THE INVESTOR] Hyundai Motor, SK Telecom and Hanwha Asset Management will jointly establish a US$45 million fund to invest in startups working on artificial intelligence and smart mobility, according to the firms on Nov. 16. 

Named AI Alliance Fund, it will be launched in the first quarter of next year, with the three companies each injecting US$1.5 million. Canadian AI startup Element AI will serve as the investment adviser. 

The agreement was signed between the four firms at Plaza Hotel in central Seoul, with Chi Young-cho, executive vice president of strategy and technology at Hyundai Motor, Yoo Young-sang head of business strategy at SK Telecom, Hanwha Asset Management CEO Kim Yong-hyun and Element AI CEO Jean Francois Gagne in attendance. 

“Based on Element AI’s outstanding researchers and global network, the three firms will thoroughly analyze technology capability, market value and growth potential to make investment decision,” said Hyundai Motor. 

From left: Hanwha Asset Management CEO Kim Yong-hyun, Yoo Young-sang, head of business strategy at SK Telecom, Chi Young-cho, vice president of strategy and technology at Hyundai Motor and Element AI CEO Jean Francois Gagne.

The fund will support startups in the US, Europe and Israel with main focuses on AI, smart mobility, as well as fintech, it added. 

“Infusing large companies with AI capabilities is the future of global industrialization,” Gagne said. “Our position in the marketplace gives us extraordinary access to cutting-edge technologies being developed today -- all we need are partners and capital commitment to seed the future, and that’s what we are achieving today with the announcement.”

Montreal-based Element AI, co-founded by Gagne and Yoshua Bengio, deep-learning expert and professor at the University of Montreal, develops AI platforms for companies. It made headlines recently for getting financial backing from major tech giants, including Microsoft, Intel and Nvidia. 

The new fund comes as Hyundai has been putting all-out efforts to secure a broad range of future car technologies, including autonomous driving and AI. 

On Nov.15, it opened a new open innovation center Hyundai Cradle in Silicon Valley. The new hub will focus on discovering future mobility technology as well as nurture and invest in startups both in the area and Korea.

By Ahn Sung-mi (sahn@heraldcorp.com)