OpenAI partners with Korean tech firm Kakao in Asia expansion
What's the story
After big commercial deals, OpenAI is doubling down on its expansion efforts in Asia.
The US-based artificial intelligence (AI) giant recently announced a strategic partnership with Kakao, one of the top tech companies in South Korea.
The deal would help OpenAI better understand Asian languages and user behavior, possibly opening the door for more independent business in these markets.
AI development
OpenAI and Kakao to develop Korean-language assistant
The partnership with Kakao was announced at an event in Seoul, co-hosted by Kakao CEO Shina Chung and OpenAI CEO Sam Altman.
The collaboration will initially focus on three projects, including the development of a new Korean-language assistant called Kanana, powered by OpenAI technology.
Plus, this technology will also be integrated into KakaoTalk, one of Asia's most popular messaging apps.
Investment boost
OpenAI secures $3 billion commitment from SoftBank
In another development, Japanese multinational conglomerate SoftBank has committed a $3 billion budget to integrate OpenAI technology into its group companies and subsidiaries.
This also includes the formation of a joint venture, SB OpenAI Japan, to create solutions for Japanese enterprises.
The partnership with Kakao and SoftBank would give OpenAI access to millions of consumers in their markets, opening new avenues for linguistic expansion.
Market expansion
OpenAI's strategic collaborations aim to enhance AI services
Altman emphasized the importance of these partnerships during a press event, saying, "Korea is a very impressive market. The adoption of AI in Korea is remarkably advanced."
He added that different industries from energy to semiconductors and internet companies create a strong ecosystem for deploying AI.
These partnerships will likely bring OpenAI services to new populations in their native languages, taking a big step toward global expansion.
Strategic growth
OpenAI's international expansion strategy amid rising competition
The emergence of Chinese AI giant DeepSeek has highlighted the importance of OpenAI extending its footprint beyond the US. This is especially important as the company keeps developing and training its LLMs.
The deals with Kakao and SoftBank are a part of this growth strategy, designed to make sure OpenAI's tech is as good in other languages as it is in English.