OpenAI Expands into South Korea with Kakao Partnership

Published On Tue Feb 04 2025
OpenAI Expands into South Korea with Kakao Partnership

OpenAI, Kakao to jointly develop AI products for South Korea - CNA

OpenAI announced on Tuesday that they will be collaborating with Kakao, the chat app operator, to develop artificial intelligence products tailored for the South Korean market. This partnership marks OpenAI's second significant alliance in Asia, following their recent collaboration with Japan's SoftBank Group. The CEO of OpenAI, Sam Altman, has been actively pursuing partnerships across the region, including a planned visit to India to meet with Prime Minister Narendra Modi.

OpenAI chief Altman signs deal with South Korea's Kakao after ...

Partnership with Kakao

Kakao, known for operating South Korea's leading messaging app KakaoTalk, will leverage OpenAI's advanced technology, specifically the ChatGPT creator, to enhance its range of products and services. Despite Kakao's dominant position in the local market, particularly in messaging, e-commerce, payments, and gaming, the company aims to strengthen its AI capabilities to keep pace with competitors like Naver.

Strategic Meetings

Altman's visit to South Korea included meetings with key industry figures such as SK Group Chairman Chey Tae-won and planned discussions with Samsung Chairman Jay Y. Lee and SoftBank Group CEO Masayoshi Son. The semiconductor expertise of companies like SK Hynix and Samsung Electronics aligns with OpenAI's focus on AI hardware, specifically high bandwidth memory chips for AI processors.

OpenAI chief Altman inks deal with South Korea's Kakao

Future Plans

Altman hinted at potential investments in South Korea's AI computing center project, a national initiative aimed at fostering AI innovation through significant public and private sector investments. The country's commitment to AI infrastructure and technology development makes it a crucial market for OpenAI, reflecting the company's strategic expansion in the region.

Following these developments, Kakao's stock saw a modest increase, signaling positive market sentiment towards the collaboration. The partnership between OpenAI and Kakao underscores the growing importance of AI technology in South Korea's digital landscape, paving the way for innovative AI products and services tailored to the local market.

OpenAI inks deal with South Korea's Kakao amid growing AI ...

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