KT Signs 5-Year Strategic Partnership with MS
Developing Korean AI Using MS Small Language Model Pai
Also Developing Korean Cloud and Establishing AX Corporation
KT and Microsoft have established a business partnership in the fields of artificial intelligence (AI) and cloud computing. Over the next five years, the two companies will jointly develop Korean-style AI models, establish a specialized AI transformation (AX) corporation, and collaborate on joint research and development (R&D) projects worth trillions of won.
Satya Nadella, CEO and Chairman of Microsoft (left), and KT CEO Kim Young-seop are shaking hands at the strategic partnership signing ceremony held on the 27th (local time) at Microsoft's headquarters in Redmond, Washington, USA. Photo by KT
On the 29th, KT announced that on the 27th (local time), it signed a strategic partnership worth trillions of won for five years at Microsoft’s headquarters in Redmond, Washington, USA, to cooperate and share capabilities in AI, cloud, and IT sectors.
Over the next five years, the two companies plan to pursue ▲development of Korea-specific specialized AI solutions ▲development of Korea-specific cloud services ▲establishment of an AX specialized company ▲strengthening AI research and development (R&D) capabilities across the Korean technology ecosystem ▲joint research and nurturing of domestic AI experts.
Specifically, the two companies will jointly develop AI models optimized for Korean culture and industry using GPT-4o, Phi, and other technologies. Phi is Microsoft’s high-performance small language model. From the initial testing and application stages, they will collaborate to launch specialized services reflecting Korea’s unique language and culture.
The developed models will be utilized not only for KT’s customer service chatbots but also for building industry-specific specialized AI solutions for business-to-business (B2B) customers. During the research and development process, safe and trustworthy AI principles and processes will be applied.
Additionally, KT will integrate Microsoft’s conversational AI copilot into its services. Furthermore, Korea-specific copilots targeting industries such as education, healthcare, and mobility will be developed.
They will also jointly develop cloud services with enhanced security for B2B operators. These services will comply with domestic personal information protection and regulatory requirements while offering versatility to utilize the latest AI and cloud services.
KT will establish a new AX specialized corporation composed of AI, cloud, and IT experts aiming for global expansion. This corporation will provide a one-stop service enabling users to smoothly use AI, based on KT Group’s IT capabilities and Microsoft’s AI and cloud platforms. Microsoft will support this company with specialized personnel for three years.
KT will conduct joint research projects on AI new technologies and future networks in collaboration with Microsoft Research (MSR) in Korea. They will expand participation from domestic universities and research institutions and strengthen global technological cooperation to support the cultivation of global talent in AI research and development within Korea.
Moreover, the two companies will establish an 'Innovation Center' in the KT Gwanghwamun Building to provide a space where domestic companies and institutions can research and develop solutions with the support of KT and Microsoft technologies and experts.
They will also operate joint educational programs to nurture AI talent. KT personnel will participate in joint projects and workshops with Microsoft global engineers. Over the next five years, the two companies plan to support education programs for all employees to enhance comprehensive capabilities including technology, consulting, and marketing.
Young-seop Kim, CEO of KT, stated, "This partnership with Microsoft is a significant opportunity that goes beyond simple technological cooperation to expand the foundation of AI in Korea and accelerate revolutionary innovation across all domestic industries and daily life. Based on a strong strategic partnership with a major big tech company, we will rapidly grow into a competitive AICT (AI+ICT) company in both domestic and international markets."
Satya Nadella, CEO and Chairman of Microsoft, said, "Through this strategic partnership, we can combine KT’s industry expertise with the entire technology stack from Azure AI to Microsoft 365 Copilot. Microsoft will accelerate AI transformation across private and public sectors and support more users in creating new AI-based experiences."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
