KT and Microsoft to Launch Korea-Specific AI Model and Innovation Center in 2024

KT to open joint innovation center for AI research with Microsoft next year

KT to open joint innovation center for AI research with Microsoft next year KT CEO Kim Young-shub, center, speaks about their plans to open a joint innovation center with Microsoft next year during a press conference at a hotel in Jung District, Seoul, Oct. 10. Yonhap KT, a major Korean mobile carrier, will jointly open an innovation center for research of artificial intelligence (AI) and cloud computing technologies with Microsoft next year, the Korean company said Thursday. The establishment of the Innovation Center comes as part of KT and Microsoft's five-year partnership announced last month aimed at co-developing new AI models tailored to the Korean language and culture, as well as new cloud services catering to the needs of Korean corporate customers. As part of the partnership, KT plans to launch a new company specializing in AI transformation (AX) in the first quarter of next year to offer customized service to corporate clients and expand into the global AX market. Additionally, KT and Microsoft will create an AX strategic fund to expand the AX ecosystem in Korea. KT CEO Kim Young-shub said the company's cooperation with Microsoft will strengthen its competitiveness as a comprehensive AI and IT technology firm and further help Korea make a leap to become a global hub for AI and cloud. "Microsoft also knows the importance of Korea in the global information and communications industry," Kim said, noting KT has greatly valued the U.S. tech giant's experience and its top-tier capacity in cloud, data and AI. (Yonhap)

KT to debut Korea-specific AI model with Microsoft next year

KT CEO Kim Young-shub speaks during a press conference at Novotel Ambassador Seoul Hotel in Jung District, Seoul, Thursday. Yonhap Telecom company expects $3.4 bil. in additional sales from partnershipBy Nam Hyun-woo KT will debut a Korea-specific artificial intelligence (AI) model within the first half of next year, as part of a partnership with Microsoft, the telecom company's CEO said, Thursday, pledging that the collaboration is expected to generate 4.6 trillion won ($3.4 billion) in sales for the next five years. Kim Young-shub, CEO of KT, said the partnership with Microsoft will advance the company's vision of becoming an AI-driven communication technology (AICT) firm. He emphasized that this collaboration will ultimately support the AI transformation of Korean companies through KT's AI and cloud services. "By leveraging the collaboration with Microsoft, KT will enhance its AI and cloud capabilities, becoming a leading company in providing the fastest and most secure, customized AICT services to corporate and individual clients here," Kim said during a press conference in Seoul. Last month, KT and Microsoft signed a five-year partnership focused on comprehensive cooperation in AI and cloud services. As part of this collaboration, the two companies agreed to co-develop Korea-specific AI services by leveraging OpenAI's GPT-4 and Microsoft's Phi language model. During the press conference, KT announced that the Korea-specific AI service is set to be developed by the second quarter of next year. Additionally, the telecom company plans to launch industry-specific AI services based on Microsoft's Phi-3.5 small language model. Read MoreKT, Microsoft join forces to launch Korean-style AI, cloud services To support these services, KT has begun the process of training GPT-4o on Korean textbooks, encyclopedias, news articles, and literary works. This approach aims to gather diverse data in the fields of education, history, and culture. "We are convinced that this process will boost the development process of Korea-tailored AI services," KT's Chief Technology Officer Oh Seung-phil said. "Just as KT laid the national telecommunications infrastructure in the past, the company now aims to establish the foundational AI and cloud networks to drive innovation across all industrial sectors." KT also said it is collaborating with Microsoft to develop cloud services tailored for the public and financial sectors, considering Korea's regulatory and security environment. The companies plan to commercialize these services in the first quarter of next year. Through the partnership, KT expects its AI transformation business to generate an additional 269 billion won in revenues next year, peaking at 1.37 trillion won by 2029. The company anticipates that the collaboration will yield up to 4.6 trillion won in additional sales over the next five years. To support this initiative, KT and Microsoft will invest approximately 2.4 trillion won. Half of this funding will be dedicated to infrastructure, while the other half will be allocated for research and development (R&D) and marketing, according to KT Executive Vice President Jung Woo-jin. Microsoft Korea CEO Cho Won-woo speaks during a press conference at Novotel Ambassador Seoul Hotel in Jung District, Seoul, Thursday. Yonhap Jung said the partnership will also enable the company to acquire the latest AI processors for its data centers. "Microsoft will be the first client to be supplied with Nvidia's latest H200 graphics processing unit (GPU), and KT is preparing to be the first to bring it to Korea," Jung said. "We are also discussing the possibility of expanding and advancing the partnership, depending on the demand and supply of GPUs." Microsoft Korea CEO Cho Won-woo said the U.S. tech giant recognizes the potential of Korea-specific AI services. He emphasized that an AI trained within Korea's advanced industrial environment will serve as a foundation for the company to expand into other markets. "Although this is an AI-based partnership, it incorporates information and communication technologies across various sectors in terms of long-term research and development, joint engineering and detailed business and investment plans," Cho said.