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OpenAI and Kakao Forge Strategic Partnership to Develop AI Solutions for South Korea

OpenAI and Kakao Forge Strategic Partnership to Develop AI Solutions for South Korea
Kakao CEO Shina Chung (left) and OpenAI CEO Sam Altman announces a joint venture in a press conference in Seoul, Korea on February 4, 2025 (Kakao)
  • PublishedFebruary 4, 2025

OpenAI, the US-based creator of ChatGPT, and South Korea’s tech giant Kakao have announced a strategic collaboration to co-develop artificial intelligence (AI) products tailored for the Korean market.

The partnership, revealed during a joint press conference in Seoul with OpenAI CEO Sam Altman and Kakao CEO Shina Chung, marks a significant move to integrate advanced AI technologies into Kakao’s suite of digital services.

Kakao, a major player in South Korea’s digital ecosystem with services spanning online banking, ride-hailing, and messaging, will utilize OpenAI’s technology to enhance its products. One key development includes the launch of an AI-driven messaging service called Kanana, which will provide personalized responses based on chat records. Kakao also plans to integrate OpenAI’s technology across its existing platforms, including its popular messaging app KakaoTalk.

“Kakao has a deep understanding of how technology can enrich everyday lives, and they’ve consistently delivered innovative experiences for their users,” said Sam Altman. “We’re excited to bring advanced AI to Kakao’s millions of users and work together to transform how they communicate and connect.”

CEO Shina Chung described the partnership as a “turning point” in Kakao’s AI strategy, indicating a shift away from developing its own large language models due to high costs and uncertain business prospects.

The announcement comes as OpenAI continues to expand its presence in Asia amid intensifying global competition in the AI sector. Altman’s visit to South Korea included meetings with executives from leading semiconductor companies Samsung and SK Hynix, both of which are key suppliers of high-bandwidth memory chips for AI processors.

Altman also acknowledged that OpenAI is “actively considering” investing in South Korea’s newly announced AI computing center project. The South Korean government recently unveiled a $1.4 billion initiative to build a national AI infrastructure, with anticipated investments from both public and private sectors.

The partnership underscores OpenAI’s efforts to strengthen alliances in response to rising competition from emerging AI players such as China-based DeepSeek. Altman admitted that OpenAI is still formulating a strategy to address the rise of open-source models, which are gaining traction in the AI landscape.

“We haven’t figured out a strategy yet, but we want to do more,” Altman said during a closed-door session with South Korean AI developers.

With input from Reuters, Forbes, and Fortune.