Naver Cloud Joins European AI Alliance
Introduced as a Trusted AI Case
Recognized for 'Sovereign Technology' in Europe Following the Middle East
Naver was confirmed late last year to have joined the public-private think tank ‘European AI Alliance,’ which devises artificial intelligence (AI) strategies for Europe. The approval came after the announcement of its self-developed large language model (LLM), ‘HyperCLOVA X.’ This is seen as recognition of Korean AI as a ‘Sovereign technology’ in Europe, which seeks a third option beyond American and Chinese companies. Naver aims to establish a presence in Europe and expects tangible results similar to those in the Middle Eastern market.
According to the IT industry on the 17th, Naver Cloud joined the European AI Alliance in August last year. The alliance was established by the European Union (EU) Commission in 2018. It includes over 6,000 participants from companies, academia, experts, and government officials across various countries. The alliance plays a role in providing opinions alongside the policy advisory body, the ‘AI High-Level Expert Group (AI-HLEG),’ when formulating European AI development strategies and policies. It also participated in discussions on the ‘AI Act,’ the first regulation on AI. Regular and irregular meetings are held annually to discuss AI policies and development cases.
Naver CEO Choi Soo-yeon is unveiling the large language model 'Hyper ClovaX' for super-large artificial intelligence (AI) services at the 'Team Naver Conference Dan23' held on the 24th at the Grand InterContinental Seoul Parnas in Gangnam-gu, Seoul. Photo by Kang Jin-hyung aymsdream@
Naver has been pushing for membership since 2022 to raise its profile in Europe and create a foothold for market entry. It approached the alliance with the intention to share efforts to secure AI sovereignty and research on AI ethics. However, it took more than a year to gain actual approval. The approval came after the launch of HyperCLOVA X last year. On the alliance’s website, HyperCLOVA X is introduced as a ‘trusted AI demonstration case.’
Naver’s entry into the European AI Alliance can be seen as recognition of Korean AI as a sovereign technology. Sovereign technology guarantees the data sovereignty of the user country by locating data centers locally and complying with each government’s regulations. Unlike global big tech companies such as Amazon, Google, and Microsoft (MS), which maintain their own standards, Naver has positioned sovereign technology as its competitive advantage.
Unlike big tech models primarily trained on English data, HyperCLOVA X possesses Korean language capabilities. It is characterized by a high understanding of Korea’s social and cultural contexts. Through Naver Cloud, it shares the LLM with various companies and technology partners, creating its own ecosystem. As a sovereign technology, it has also achieved tangible results in the Middle East. In October last year, it secured a $100 million digital twin platform construction project with the Saudi government. Following this, discussions on follow-up projects in AI, cloud, and other areas are underway.
Such cases are emerging as an alternative in the European market. Europe faces significant concerns over data sovereignty issues amid American companies dominating their home turf and rapidly growing Chinese companies. The successive enactment of the General Data Protection Regulation (GDPR) and the Digital Markets Act (DMA) stems from this background. Although private projects have been promoted to secure indigenous technological capabilities in AI and cloud sectors, there have been no remarkable achievements, leading to a search for a third option.
With aligned interests, Naver is steadily engaging the European market. It established a local subsidiary, ‘Naver France,’ in 2017 and operates ‘Naver Labs Europe,’ an AI research forward base in France. It is also pursuing membership in the ‘European Cloud Alliance.’ Composed of 39 European companies, the Cloud Alliance establishes Europe-centered cloud technology standards and builds an industrial ecosystem. If Naver joins, it will be the only member from a non-European country.
Ha Jung-woo, head of Naver Cloud AI Innovation Center, said, "Europe is also seen as a major axis for global expansion, and we are building networks through technology sharing, etc. Unlike the Middle East, there are attempts to build indigenous AI, but there are no large platforms or applications, so there are many areas where Naver can target."
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