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

KT and Microsoft Forge Strategic Partnership for AI and Cloud Services

KT, a major Korean mobile carrier, has announced a groundbreaking partnership with Microsoft to develop artificial intelligence (AI) and cloud computing technologies tailored for the Korean market. This collaboration, set to unfold over the next five years, aims to position Korea as a global hub for AI and cloud services 1

1

2

Korea-Specific AI Model Development

At the heart of this partnership is the development of a Korea-specific AI model, scheduled for debut within the first half of 2024. KT has begun training GPT-4 on Korean textbooks, encyclopedias, news articles, and literary works to create an AI system that understands and reflects Korean language, culture, and context 2

2

Joint Innovation Center and AX Company

KT plans to open a joint innovation center with Microsoft in 2024 to foster research in AI and cloud computing. Additionally, the Korean telecom giant will launch a new company specializing in AI transformation (AX) in the first quarter of 2024. This initiative aims to offer customized services to corporate clients and expand into the global AX market 1

1

Financial Projections and Investments

The collaboration is expected to generate significant financial returns for KT:

• Additional revenue of 269 billion won ($200 million) in 2024
• Peak revenue of 1.37 trillion won ($1 billion) by 2029
• Cumulative additional sales of up to 4.6 trillion won ($3.4 billion) over the next five years

To support these ambitious goals, KT and Microsoft will jointly invest approximately 2.4 trillion won ($1.8 billion), evenly split between infrastructure and R&D/marketing 2

2

Cloud Services for Public and Financial Sectors

The partnership also focuses on developing cloud services tailored for Korea's public and financial sectors, taking into account the country's unique regulatory and security environment. These services are slated for commercialization in the first quarter of 2024 2

2

Related Stories

KT Accelerates AI Transformation with Microsoft Partnership, Unveiling Korean-Tailored AI Model

South Korea Taps SK Telecom, KT, Kakao to Launch Free Nationwide AI Services

Korean Telecom Giants Showcase AI Innovations at MWC 2025

SK Telecom and Lambda Partner to Launch AI Cloud Services in South Korea

Strategic Importance for Both Companies

KT CEO Kim Young-shub emphasized that this collaboration will strengthen KT's position as a comprehensive AI and IT technology firm. Microsoft Korea CEO Cho Won-woo highlighted the potential of Korea-specific AI services, viewing them as a foundation for expansion into other markets 1

1

2

Technological Advancements

KT is preparing to be among the first to bring Nvidia's latest H200 GPU to Korea, showcasing the partnership's commitment to cutting-edge technology. This move is expected to significantly boost the processing power available for AI and cloud services in the region 2

2

As this partnership unfolds, it promises to reshape the landscape of AI and cloud computing in Korea, with potential ripple effects across the global tech industry.