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OpenAI's Altman clinches deal with Kakao, second major Asian alliance this week
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OpenAI's Altman clinches deal with Kakao, second major Asian alliance this week
Feb 3, 2025 9:25 PM

*

Kakao deal follows unveiling of Japan partnership with

SoftBank

*

Altman says Korean firms to be important to Stargate

ecosystem

*

OpenAI looking at joining South Korean AI computer centre

*

Altman due to visit India on Wednesday, sources say

(Recasts and writes through)

By Hyunjoo Jin

SEOUL, Feb 4 (Reuters) - OpenAI said on Tuesday it will

develop artificial intelligence products for South Korea with

chat app operator Kakao, unveiling a second major

alliance with a high-profile Asian partner this week.

In a whirlwind tour through Asia, OpenAI Chief Executive Sam

Altman also announced a partnership with Japan's SoftBank Group

on Monday and is, according to sources, scheduled to

visit India on Wednesday where he is seeking to meet with Prime

Minister Narendra Modi.

Like SoftBank, Kakao said it would be using technology

developed by the ChatGPT creator for its products.

Kakao operates South Korea's dominant messaging app

KakaoTalk, which commands a whopping 97% domestic market share

and has expanded into areas such as e-commerce, payments and

gaming. It has positioned AI as a new engine of growth but

analysts say it has lagged behind local rival Naver

in the AI race.

"We are particularly interested in AI and messaging," Altman

told a press conference he held with Kakao CEO Chung Shina in

Seoul.

Altman also said many Korean companies will be important

contributors to the ecosystem of the U.S. Stargate data centre

project. He declined to elaborate, saying he wants to keep

partnership conversations confidential.

He met with SK Group Chairman Chey Tae-won earlier on

Tuesday. He also plans to meet with Samsung Chairman Jay Y. Lee

and SoftBank Group CEO Masayoshi Son in Seoul later in the day,

the Maeil Business Newspaper reported.

Both SK Hynix ( HXSCF ) and Samsung Electronics ( SSNLF )

produce high bandwidth memory chips used in AI

processors.

Samsung declined to comment on the newspaper report, while

SoftBank did not immediately respond to a request for comment.

Last month, U.S. President Donald Trump announced private

sector investment of up to $500 billion to fund AI

infrastructure, noting OpenAI, SoftBank and Oracle were

planning a data centre venture called Stargate for artificial

intelligence projects.

"There is so much happening in Korea that will be critical

for that," Altman said.

He added that Korea's energy, semiconductor and internet

companies made the country an important market for OpenAI,

noting that Korean demand for AI products was growing "super

fast".

Asked whether OpenAI is looking at joining and investing in

South Korea's AI computing centre project, Altman said the U.S.

company is "actively considering" such a move.

Last month, the South Korean government said it planned

to build a national AI computing centre that would draw on

investment from the public and private sectors worth up to 2

trillion won ($1.4 billion).

Kakao Shares were up 0.2% on Tuesday after surging 9% on

Monday.

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