AI company behind the popular ChatGPT, has entered into a partnership with South Korea’s Kakao to develop AI products, marking the second major alliance in Asia this week. The announcement was made on Tuesday, following OpenAI Chief Executive Sam Altman’s recent tour of Asia. The partnership with Kakao comes just a day after OpenAI unveiled another collaboration with Japan’s SoftBank Group.
During a press conference in Seoul, Altman discussed the collaboration with Kakao, which operates South Korea’s dominant messaging app KakaoTalk. With a market share of 97% in South Korea, Kakao has expanded into various sectors, including e-commerce, payments, and gaming. However, analysts have pointed out that Kakao has lagged behind its local rival Naver in the AI race, making the partnership with OpenAI a significant step forward.
“We are particularly interested in AI and messaging.”
Altman said, highlighting the opportunities to integrate OpenAI’s advanced AI technologies into Kakao’s services. Kakao’s CEO, Chung Shina, echoed this sentiment, emphasizing that AI would serve as a new engine of growth for the company. As part of the collaboration, Kakao will incorporate OpenAI’s technology into its products, including the popular KakaoTalk app. This partnership marks OpenAI’s continued expansion into the Asian market, a region increasingly focused on AI development.
In addition to the deal with Kakao, Altman also spoke about the Stargate data centre project, a joint venture between OpenAI and Oracle. The project aims to build AI capacity in the United States, and Altman suggested that many Korean companies could play a role in it, though he refrained from providing further details, citing confidentiality.
Altman’s visit to South Korea is part of a broader tour of Asia, with plans to meet with key figures in the tech industry. Earlier in the day, he met with SK Group Chairman Chey Tae-won, and he is scheduled to meet with Samsung Chairman Jay Y. Lee and SoftBank CEO Masayoshi Son later in the day. The meetings are likely to include discussions on AI development and potential cooperation, with a particular focus on the Stargate project. Both SK Hynix and Samsung Electronics, which produce high-bandwidth memory chips used in AI processors, are expected to play crucial roles in these efforts.
The collaboration with Kakao and the ongoing discussions with major tech companies in South Korea highlight the growing importance of the country in the global AI landscape. The South Korean government recently announced plans to build a national AI computing center, further solidifying the country’s role in advancing AI infrastructure.
Altman expressed interest in joining and investing in South Korea’s AI computing center project, stating that OpenAI was “actively considering” such a move. He emphasized that South Korea’s energy, semiconductor, and internet companies make the country a key market for OpenAI, noting that the Korean demand for AI products is expected to drive investment from both the public and private sectors, potentially amounting to 2 trillion won ($1.4 billion).
This announcement has had a positive impact on Kakao’s stock, with shares rising by 0.2% on Tuesday following a 9% surge on Monday. The partnership with OpenAI is seen as a significant step in Kakao’s efforts to position itself as a leader in AI-driven innovation, helping it close the gap with competitors like Naver. OpenAI’s push into Asia reflects the growing demand for AI technology in the region, where countries like South Korea, Japan, and China are making significant strides in AI development. With its partnerships in Asia, OpenAI is positioning itself to be at the forefront of this rapidly evolving market, expanding its reach and influence on a global scale.
