KT has fleshed out its AX platform strategy with a bundled enterprise model that uses AI data centers to win customers, routes their domestic and international data traffic through KT's submarine cable network, and later charges for AI consumption through its planned Token Factory service. The company said it aims to turn telecom-style bundling into an AI revenue engine by tying infrastructure, connectivity and usage-based billing across the value chain. At a recent corporate day event, KT detailed plans to expand AI data center capacity from 152MW to 1.15GW by 2031 and submarine cable capacity from 38Tbps to 128Tbps. KT also aims to convert its 3,500 central offices into AI edge facilities and has kept its goal of more than doubling AI transformation, or AX, revenue by 2028 versus 2025. Second-quarter results showed growth in the AI business even as headline earnings fell from a year earlier because last year's quarter included one-time real estate gains. Combined AX revenue from KT's AX operations and KT Cloud reached 367.8 billion won, while KT Cloud revenue rose 19.8% year over year. Consolidated Q2 revenue was 6.68 trillion won and operating profit was 648.3 billion won, down 10.1% and 36.1% respectively. Excluding one-time items, recurring operating profit was about 610 billion won, above market expectations. Net profit fell 34.5% to 480.6 billion won after a 54 billion won fine from South Korea's Personal Information Protection Commission was booked as a non-operating expense. In wireless, ARPU fell 2.3% to 34,412 won, largely because of a customer compensation program tied to a hacking incident, though 5G subscribers rose to 11.15 million and MVNO users climbed 18.3% to 9.048 million. KT also reaffirmed shareholder return targets including a cumulative 1 trillion won buyback and cancellation by 2028, while disclosing non-core assets and additional buyback considerations. Analysts said the stronger takeaway from the event was KT's attempt to build a differentiated AI infrastructure and billing platform rather than simply expand payouts.