OpenAI partners with South Korea’s Kakao Corp

OpenAI and South Korea’s Kakao Corp. signed a deal to integrate the Sam Altman-led company’s advanced models into Kakao’s platforms, including its widely used messaging service KakaoTalk and the forthcoming artificial intelligence (AI) assistant Kanana.

The partnership will also focus on the co-development of AI-driven products tailored specifically for the Korean market.

During a joint press conference in Seoul on Tuesday, Kakao CEO Jeong Shin-ah and OpenAI chief Altman outlined the objectives of the collaboration, emphasizing AI accessibility and innovation.

Kakao plans to adopt ChatGPT Enterprise as part of its transition to becoming an “AI-native company,” leveraging OpenAI’s technology to enhance its services.

“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,” Altman said.

The integration of OpenAI’s models is expected to transform KakaoTalk, which is used by over 45 million South Koreans, by enhancing conversational AI and automating personalized interactions.

Kanana will also incorporate OpenAI’s technology to enable more natural and contextual group and one-on-one conversations.

The partnership is OpenAI’s strategic push into Asia amid growing competition from AI firms in China and Europe.

The collaboration comes after Japan’s SoftBank unveiled a joint venture named SB OpenAI Japan just a day earlier.

The 50-50 partnership aims to promote AI services and plans to implement an AI system called “Cristal Intelligence” across SoftBank subsidiaries, including Arm Holdings and PayPay. The initiative is set to commence with an annual budget of $3 billion.

SoftBank is also reportedly in discussions to invest between $10 billion and $25 billion in OpenAI, potentially making it the company’s largest backer.