OpenAI and Kakao Form Strategic Partnership for AI Development in South Korea

OpenAI announced on Tuesday its collaboration with Kakao, a leading chat application operator in South Korea, to develop artificial intelligence products tailored for the South Korean market. This partnership marks OpenAI's second significant alliance with a prominent Asian company within the same week.

During his extensive tour of Asia, OpenAI's Chief Executive Officer, Sam Altman, made headlines by also forming a partnership with Japan's SoftBank Group the day before. Sources indicate that Altman is set to visit India on Wednesday, where he aims to meet with Prime Minister Narendra Modi to discuss potential collaborations.

Kakao, which operates the hugely popular messaging app KakaoTalk, boasts a 97% market share in South Korea. In addition to messaging, Kakao has expanded its services into e-commerce, payment systems, and gaming. The company has identified artificial intelligence as a crucial area for growth, although analysts have noted that Kakao has been trailing behind its local competitor, Naver, in the race for AI advancements.

At a press conference in Seoul, Altman expressed OpenAI's keen interest in the intersection of AI and messaging, indicating that this partnership could yield exciting developments for both companies.

Altman also shared that many South Korean enterprises are likely to play a vital role in the ecosystem surrounding the U.S. Stargate data center project. However, he refrained from divulging further details regarding these partnership discussions, citing the need for confidentiality.

On Tuesday, Altman met with SK Group's Chairman, Chey Tae-won. He is also slated to have discussions with key figures, including Samsung Chairman Jay Y. Lee and SoftBank Group's CEO, Masayoshi Son, later that same day, as reported by the Maeil Business Newspaper.

South Korea's SK Hynix and Samsung Electronics are recognized for manufacturing high-bandwidth memory chips essential for AI processors. While Samsung declined to comment on the reports, SoftBank has yet to respond to inquiries.

In a recent announcement, U.S. President Donald Trump disclosed plans for private sector investments totaling approximately $500 billion aimed at bolstering AI infrastructure. This initiative includes collaborations between OpenAI, SoftBank, and Oracle for the Stargate data center focused on artificial intelligence projects.

Altman noted, "There is so much happening in Korea that will be critical for that," underscoring the country's pivotal role in AI development.

He pointed out that South Korea's robust energy sector, along with its semiconductor and internet companies, positions the country as a significant market for OpenAI. Altman remarked that the demand for AI products in Korea is growing "super fast," highlighting the urgency of tapping into this market.

When questioned about the possibility of OpenAI joining and investing in South Korea's national AI computing center project, Altman confirmed that the U.S.-based company is "actively considering" such opportunities.

Recently, the South Korean government announced its ambition to establish a national AI computing center that is expected to attract joint investments from both public and private sectors, with a funding target of up to 2 trillion won (approximately $1.4 billion).

Following the announcement of the partnership with Kakao, the company's shares experienced a modest increase of 0.2% on Tuesday, building on a 9% surge recorded the previous day.

OpenAI, Kakao, AI