Samsung buys Spanish AI firm Zhilabs in prep for 5G
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Samsung Electronics announced that it has acquired Barcelona-based artificial intelligence startup Zhilabs in a bid to further enhance its 5G capabilities.
Financial details of the deal were not disclosed.
Zhilabs will be fully owned by Samsung, but it will continue to operate independently under its own management, the South Korean vendor said in a statement.
Zhilabs provides AI-based network and service analytics solutions and its products are used by telecoms carriers including Celcom, Maxis, NTT East, Telenor, O2, Vodafone, TIM, and Telefonica.
Samsung said AI-based automation will play a central role in the introduction of new services driven by 5G, such as industrial Internet of Things (IoT) and connected cars, as carriers seek to implement new automated solutions and network virtualization features.
“5G will enable unprecedented services that generate exponentially greater data traffic, for which automated and intelligent network analytics tools are vital,” said Youngky Kim, president and head of networks business at Samsung Electronics.
“The acquisition of Zhilabs will enable Samsung to help carriers meet these demands to measure and ensure the quality of each subscriber’s service experience.”
The acquisition of Zhilabs is also part of the company’s pledge, announced in August, to invest 25 trillion won ($22 billion) in AI, 5G, automotive electronics components and biopharmaceuticals technologies.
Questions & Answers
Q.Why has Samsung acquired Zhilabs?
Why has Samsung acquired Zhilabs?
Samsung has acquired Zhilabs to further enhance its 5G capabilities. The company believes AI-based automation is central to introducing new services driven by 5G, like industrial IoT and connected cars.
Q.What kind of services does Zhilabs provide?
What kind of services does Zhilabs provide?
Zhilabs provides AI-based network and service analytics solutions. Its products are currently used by various telecoms carriers to help manage their networks and customer service experience.
Q.Will Zhilabs continue to operate as a separate entity after the acquisition?
Will Zhilabs continue to operate as a separate entity after the acquisition?
Yes, Zhilabs will continue to operate independently under its own management. Samsung will fully own the company but allow it to maintain its distinct operational structure.
Q.How does this acquisition fit into Samsung's broader investment strategy?
How does this acquisition fit into Samsung's broader investment strategy?
This acquisition is part of Samsung's commitment to invest 25 trillion won, or $22 billion, in AI, 5G, automotive electronics components, and biopharmaceuticals technologies. This pledge was announced in August.
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