Daewon CTS Expands Business with AI Infrastructure Solutions

Establishing an AI infrastructure strategy office and developing new businesses, including hyperscale AI construction projects.

February 8, 2024 – Daewon CTS (CEOs Kim Bo-kyung, Lee Sang-ho, and Ha Seong-won), which has been dedicated to IT distribution for the past 35 years, is expanding its business area into AI infrastructure solutions.

Daewon CTS has been steadily pursuing business diversification for a long time. Having previously provided hardware and solutions for building corporate IT infrastructure, including PCs, servers, workstations, networks, and storage, Daewon CTS is now expanding its business to include data center solutions, AI services, and high-performance computing. This is because, with the proliferation of generative AI throughout society, customer environments and needs for IT infrastructure construction are rapidly changing.

Accordingly, Daewon CTS established a Data Center Business Division in 2022, comprised of experts in artificial intelligence (AI), high-performance computing (HPC), cloud, and networking, to expand its business beyond IT distribution into the rapidly growing data center solutions and services sector. The company has begun targeting the rapidly growing AI market, focusing on this division. The company has also signed a distribution agreement with Arista Networks, a leader in data center networks.

Last year, we signed a Memorandum of Understanding (MOU) with Terratech, Glusys, and others to collaborate on artificial intelligence (AI) services and high-performance computing. Daewon CTS, the Korean distributor for global server company K2US, is now fully supplying high-performance AI servers specialized for cloud and AI applications in Korea.

This year, the company plans to further expand its reach with AI infrastructure solutions. The company kicked off its AI business expansion with a seminar held in September last year on the topic of "On-Premises AI Infrastructure: Building Infrastructure for Hyperscale AI." Daewon CTS emphasized that building an optimal infrastructure for hyperscale AI is possible by building a GPU cluster using its solutions.

The introduction of a product recommendation AI chatbot to the IT shopping mall Computer Korea last December is also part of the company's efforts to strengthen its AI market. Leveraging the generative AI ChatGPT, the company developed a natural language-based consultation recognition and product consultation service solution and applied it to the online shopping mall to facilitate faster and more convenient shopping. Ali's recommendation giant language model (LLM), based on GPT-3.5 Turbo, has been enhanced with RAG and CoT, enabling it to categorize new products and complex and diverse product lines added to Computer Korea and provide fast and accurate answers.

Daewon CTS also recently established an AI Infrastructure Strategy Office, and is expected to further accelerate its AI business starting this year. The company has appointed Kim Seong-tae, a seasoned AI veteran, as Managing Director. The company plans to target the domestic AI market by forging close partnerships with KAYTUS, an AI server manufacturer; ARISTA, a leader in AI-based data center networking equipment; and VAST Data, an AI data platform company.

Kim Seong-tae, managing director of Daewon CTS's AI Infrastructure Strategy Office, said, "Daewon CTS plans to go beyond its existing unrivaled position in IT distribution and solidify its leading position in the AI field, while strengthening its capabilities in building and managing AI infrastructure."