Samsung to Acquire Zhilabs to Expand AI-Based Automation in 5G Portfolio

SEOUL, Korea – October 17, 2018 – Samsung Electronics Co., Ltd. today announced its acquisition of Zhilabs, known for its Artificial Intelligence (AI)-based network and service analytics, to further enhance its 5G capabilities. The acquisition lays the foundation for Samsung to strengthen its 5G solutions with automation functions to finely tune customer experiences in the 5G era.

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. AI-based transformation can be used to analyze user traffic, classify applications being used, and improve overall service quality – capabilities that can no longer be adequately addressed by existing solutions as technology advances.

“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.”

“5G technology will disrupt the communications landscape for the better, but it will only be successful if the quality of the networks transferring the information can be measured and improved to provide a best-in-class experience,” said Joan Raventós, CEO at Zhilabs. “We are delighted to be joining the Samsung Electronics family and adding our software products and technology to the existing end-to-end solutions that the company offers its customers.”

ZhiLabs, fully owned by Samsung, will operate independently under its own management system. Samsung is looking forward to joining the company’s capabilities to create new cutting-edge technology in the transformation from 4G to 5G.

In addition to this acquisition, Samsung will continue to strengthen its automation solutions for helping carriers measure the quality of each user service and automatically optimize service quality without human intervention. The company will also explore and invest in other business opportunities powered by emerging technologies.

In August, Samsung announced plans to boost investments in businesses that will drive its future growth, committing to a KRW 25 trillion (U.S. $22 billion) investment over the next three years in the areas of artificial intelligence (AI), 5G, automotive electronics components and biopharmaceuticals. The acquisition of Zhilabs is aligned to recently announced Samsung’s investment plan.