IT services firm eyes M&A in AI, security, GPU infrastructure to drive next phase of growth
Samsung SDS said Wednesday it will prioritize growth investments using its roughly 6.4 trillion won ($4.7 billion) in cash reserves, betting on artificial intelligence and cloud computing to drive its next phase of expansion.
At its annual shareholders meeting, CEO Lee Jun-hee outlined a capital allocation plan focused on balancing growth investments with shareholder returns.
“We view 2026 as a pivotal year that will determine leadership in AI and cloud,” Lee said. “Our priority this year is growth.”
The IT services arm of Samsung Group plans to expand spending on AI infrastructure, including new data centers in Gumi, North Gyeongsang Province, and a national AI computing facility. It will also add GPU-based servers at its Dongtan site in Gyeonggi Province to meet rising demand for AI workloads.
Samsung SDS is also pursuing strategic acquisitions, targeting companies with capabilities in AI transformation, AI security and GPU infrastructure, as well as industry-specific IT providers. It is additionally reviewing investments in logistics firms to strengthen its digital forwarding business.
The company acquired supply chain management solutions firm Emro in 2023 and has since integrated it as a subsidiary, jointly developing software-as-a-service offerings.
Lee said Samsung SDS will enhance its full-stack AI capabilities and expand AI-driven services across sectors including public and financial sectors, while developing new growth areas such as AI data and design-build-operate services. The company is also reviewing emerging businesses such as stablecoins and physical AI for potential commercialization.
Samsung SDS reported 2025 revenue of 13.9 trillion won, up 0.7 percent on-year, supported by public sector AI projects. Its logistics division generated 7.39 trillion won in revenue, with its digital platform Cello Square expanding its customer base by 27 percent.
The company said the results reflect steady progress in building a growth base centered on AI, cloud and digital logistics.
At the meeting, shareholders approved governance changes including the adoption of cumulative voting and an increase in the ceiling for convertible bond issuance to 1.5 trillion won from 67 billion won.
The board was also reshuffled. Outside directors Lee Jae-jin, head of Seoul National University’s Graduate School of Data Science, and Moon Moo-il, former prosecutor general and now a senior lawyer at Shin & Kim, were reappointed. Park Jung-soo, an economics professor at Sogang University, was newly appointed as an outside director, while Kim Tae-ho, head of management support at Samsung SDS, joined as an inside director.
Lee said the company will continue to balance investment and shareholder returns while maintaining transparent governance.
herim@heraldcorp.com
