OpenAI Partners with Kakao, Expanding AI Collaborations in Asia

OpenAI partners with Kakao, a South Korean chat app operator (035720.KS) to develop artificial intelligence products. This marks OpenAI’s second major alliance with an Asian company this week. The announcement follows CEO Sam Altman’s partnership revelation with Japan’s SoftBank Group (9984.T) on Monday.

Altman is currently on a rapid tour across Asia, with sources indicating that he will visit India next. Reports suggest he aims to meet with Prime Minister Narendra Modi to discuss AI opportunities in the country.

Kakao’s AI Ambitions and Market Position

Kakao, which operates South Korea’s dominant messaging app KakaoTalk, holds an impressive 97% market share domestically. The company has expanded into various sectors, including e-commerce, payments, and gaming. While Kakao has positioned AI as a key growth driver, analysts believe it trails behind its competitor Naver (035420.KS) in the AI space.

During a press conference in Seoul with Kakao CEO Chung Shina, Altman highlighted OpenAI’s particular interest in AI and messaging. He also noted that many South Korean firms would play a crucial role in the development of OpenAI’s US-based Stargate data centre project. However, he refrained from disclosing specific details about potential partnerships.

South Korea’s Role in AI Development

Altman’s schedule included meetings with key South Korean business leaders. On Tuesday, he met with SK Group Chairman Chey Tae-won. He is also expected to meet Samsung Chairman Jay Y. Lee and SoftBank CEO Masayoshi Son, according to the Maeil Business Newspaper.

Both Samsung Electronics (005930.KS) and SK Hynix (000660.KS) manufacture high-bandwidth memory chips essential for AI processors. Samsung declined to comment on the reports, while SoftBank did not immediately respond to inquiries.

Altman acknowledged South Korea’s growing importance in AI, citing its strong energy, semiconductor, and internet industries. He also confirmed that OpenAI is “actively considering” participating in South Korea’s national AI computing centre project. The South Korean government recently announced plans for a $1.4 billion AI computing centre, funded through public and private investments.

Following the news, Kakao’s shares rose 0.2% on Tuesday, after experiencing a 9% surge on Monday.

With inputs from Reuters

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Aditya Lenka
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OpenAI Partners with Kakao to Develop AI Products for South Korea