Kakao Corp. has become the first South Korean company to form a strategic partnership with OpenAI, marking a major step in the AI research firm’s expansion into Asia.
The collaboration aims to integrate OpenAI’s advanced models into Kakao’s platforms, including KakaoTalk and its upcoming AI assistant Kanana, while also co-developing AI-driven products tailored to the Korean market.
At a joint press conference in Seoul, Kakao CEO Jeong Shin-ah and OpenAI CEO Sam Altman detailed the partnership’s goals, emphasizing AI accessibility and innovation.
The companies will leverage OpenAI’s latest AI models to enhance Kakao’s services. Kakao has decided to adopt ChatGPT enterprise as part its transition from a free service into an paid one. “AI-native company.”
OpenAI Integration:
OpenAI’s partnership with Kakao signals a strategic push into Asia amid growing competition from Chinese and European AI firms. South Korea is a market that OpenAI finds attractive due to its openness and high rate of digital adoption.
Altman called the collaboration a milestone. He said:
“Kakao has a deep understanding of how technology enhances daily life. By integrating OpenAI’s AI models, we will redefine digital communication and connectivity in South Korea.”
This move follows OpenAI’s broader international expansion, which includes partnerships with global enterprises such as Microsoft. OpenAI had mainly focused on AI enterprise applications. However, the collaboration with Kakao demonstrates its transition to mass-market adoption for consumer services.
The integration of OpenAI’s models will transform KakaoTalk, which is used by over 45 million South Koreans, by enhancing conversational AI and automating personalized interactions.
Meanwhile, the firm’s AI assistant, Kanana, will incorporate OpenAI’s technology to facilitate more natural and contextual group and one-on-one conversations.
Kakao’s AI orchestration strategy, introduced at its developer conference last October, will also benefit from the partnership. This approach allows Kakao to blend its proprietary AI models with OpenAI’s technology to optimize user experience.
Softbanking
OpenAI’s partnership with Kakao comes as other major AI players, including Google DeepMind and Anthropic, ramp up efforts to expand internationally.
OpenAI dominates the AI chatbot market in North America and Europe. However, South Korea offers a unique chance due to the high rate of digital adoption and its openness towards AI-driven products.
The partnership with Kakao also comes a day after Japan’s Softbank announced a joint venture named SB OpenAI Japan. This partnership is a 50-50 venture that aims to promote AI Services, and has plans to implement a system called “Cristal Intelligence” across SoftBank’s subsidiaries, including Arm Holdings and PayPay.
Budgeted at $3 billion per year, the initiative will begin with a budget.
Additionally, recent reports claim that SoftBank is in negotiations to invest between $10 billion and $25 billion in OpenAI, potentially making it the AI firm’s largest backer.
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