SCIENCE & TECHNOLOGY

OpenAI Partners with South Korea's Kakao for AI Development

OpenAI partners with Kakao to develop AI products in South Korea. CEO Sam Altman highlights Korea's critical role in AI innovation, semiconductor production, and investment opportunities.
2025-02-04
OpenAI Partners with South Korea's Kakao for AI Development

OpenAI announced on Tuesday its partnership with South Korea’s leading chat app operator, Kakao, to develop artificial intelligence (AI) products, marking its second significant alliance with an Asian tech giant this week.

Asian Tech Tour
The announcement was made during OpenAI CEO Sam Altman’s visit to Seoul as part of a broader tour across Asia. Just a day earlier, OpenAI had revealed a partnership with Japan’s SoftBank Group. According to sources, Altman is expected to visit India next, where he plans to meet Prime Minister Narendra Modi.

Kakao Collaboration
Kakao, which operates South Korea’s dominant messaging platform KakaoTalk with a 97% domestic market share, plans to integrate OpenAI’s technology across its product ecosystem, including e-commerce, payments, and gaming. The company views AI as a growth driver but has lagged behind local competitor Naver in the AI space.

"We are particularly interested in AI and messaging," Altman stated during a joint press conference with Kakao CEO Chung Shina.

Stargate Data Centre Initiative
Altman also revealed that Korean companies would play a vital role in the Stargate data centre project, a collaboration between OpenAI and Oracle to bolster AI capacity in the United States.

High-Profile Meetings
Altman met with SK Group Chairman Chey Tae-won earlier on Tuesday and was set to meet Samsung Chairman Jay Y. Lee and SoftBank Group CEO Masayoshi Son later in the day.

SoftBank’s Son mentioned potential collaboration with Samsung, though specific details were not disclosed. SK Hynix and Samsung Electronics, both producers of high-bandwidth memory chips essential for AI processors, are expected to play significant roles in AI development.

US Investment and South Korea’s AI Strategy
Altman’s visit follows recent announcements by US President Donald Trump about $500 billion in private sector investment to fund AI infrastructure. South Korea, too, has announced plans to build a national AI computing centre with a projected investment of up to 2 trillion won ($1.4 billion).

"There is so much happening in Korea that will be critical for that," Altman said, emphasizing Korea’s strength in energy, semiconductors, and internet technology.

Market Impact
Kakao shares saw a modest 0.2% rise on Tuesday after a 9% surge the previous day, reflecting market optimism over the partnership.