Samsung buys AI tech firm to help with 5G transition

Judy Cobb
October 20, 2018

"5G is expected to expand indefinitely into new services as well as services for smartphones as a fourth industrial revolution platform", said Kim Young-ki, president of the Network Business Division at Samsung Electronics.

Samsung Electronics acquired Zhilabs, a Barcelona, Spain-based provider of Artificial Intelligence (AI)-based network and service analytics solutions.

In order to ease the transition from 4G to 5G technologies, Samsung today announced the acquisition of Zhilabs.

Going forward, it's not looking like the overcrowded global smartphone market will bounce back to massive growth anytime soon, so it's certainly not surprising to see Samsung trying to branch out, as well as consolidate and beef up its other profitable businesses.

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The Zhilabs deal also serves as an action item from Samsung's announcement in August when it said it was investing about $22 billion over the next three years in companies that were working on 5G, AI, automotive electronics components or biopharmaceuticals.

The acquisition could let Samsung enhance its 5G capabilities and network quality, with Zhilabs' AI-based analytics that monitor the performance of SMS messaging, data connectivity and roaming at an individual subscriber level.

Established in 2008, Zhilabs now provides a solution that analyzes networks' conditions, performances and data traffic for different services.

Zhilabs is best known for devising a software product called FlowSight, which is capable of collecting massive data at an unrivaled speed, as well as analyzing it and automatically improving network quality to "finely tune customer experiences" both right now and in the impending "5G era". The South Korean tech giant said Zhilabs will be operated independently by existing management and forge close ties with Samsung that can create new opportunities for all sides.

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