KT Partners with MS to Develop Korean AI Based on GPT-4o in H1... New Leap Forward

Kim Young-seop "Securing Competitiveness in MS, AI, and Cloud"
Commercialization of MS Jointly Developed Cloud in Q1 Next Year
"Providing Differentiated Services Such as AI Total Package"

KT announced that it will collaborate with Microsoft (MS) to develop a Korean-style artificial intelligence (AI) based on GPT-4o in the first half of next year and commercialize cloud services for the public and financial sectors in the first quarter of next year. Through this collaboration, KT aims to enhance its competitiveness in the AI and cloud sectors and establish a new growth engine.

On the 10th, KT CEO Kim Young-seop held a press conference at Novotel Ambassador Seoul Dongdaemun and explained the background of the partnership with MS, stating, "The two companies’ goals aligned well as both were seeking partners to secure competitiveness in the AI and cloud markets, and they shared the business objective of jointly developing and providing a Korean-style AI and cloud model."

CEO Kim added, "MS is also well aware of South Korea’s importance in the global information and communication industry. MS likely decided to collaborate after considering KT’s domestic status, evaluation, experience, and capabilities, as well as its expertise in telecommunications, data centers, and major infrastructure assets, and its specialization in the public and enterprise markets. MS highly values KT’s will and vision to contribute to the ecosystem as an AICT company."

KT has signed a five-year partnership agreement with MS. The two companies will cooperate on developing Korean language-specialized AI models and services, Korean-style cloud services, and establishing an AI transformation (AX) specialized company.

The Korean-style specialized AI model will be developed based on GPT-4o starting in the first half of next year. In addition, industry-specific specialized models for sectors such as public and financial services will be developed based on the small language model 'Phi 3.5.' The Korean-style AI aims to be optimized for Korea by reflecting domestic data, laws, regulations, culture, and language. To this end, KT has secured relevant data and begun the training process.

They will also jointly develop cloud services for the public and financial sectors that comply with domestic regulations, targeting commercialization in the first quarter of next year.

At the same time, the two companies will establish and launch an AX specialized company composed of experts in AI and cloud fields. This company plans to provide consulting, architecture, and design services to companies pursuing AX and will also expand into global markets such as Asia. They also plan to jointly establish an 'AX Strategy Fund' through collaboration with partner companies.

In the coming year, they will jointly establish an 'Innovation Center' to research AI and cloud technologies. KT will conduct research on AI and future networks jointly with MS’s research center and expand participation from domestic universities and research institutions. They will also actively invest in AI-related startups both domestically and internationally. To strengthen the competitiveness of existing telecommunications businesses, they will collaborate on network modernization and 6G joint research, as well as industry-specific AX and joint R&D on GPU and NPU in sectors such as healthcare and mobility.

To nurture AI and cloud talent, they will jointly operate educational programs for five years to enhance capabilities in technology, consulting, and marketing.

KT expects that through cooperation with MS, it will be able to advance AI and cloud services and infrastructure, accumulate technological capabilities, and secure competitiveness.

From a technical perspective, KT aims to provide an 'AI total package' based on multi-LLM specialized in industry-specific areas, moving beyond existing large-scale AI models. While developing next-generation AI models, they plan to lead AI-related technologies such as Artificial General Intelligence (AGI) and Artificial Superintelligence (ASI). They also plan to prepare for next-generation IT technologies, including future communication technologies like 6G and quantum computing.

In the AI field, through joint R&D with MS and operation of the Innovation Center, they will build an 'AX value chain' encompassing medium-sized and small enterprises, startups, and academia, fostering a Korean-style AI industry ecosystem.

In the cloud sector, by collaborating with service partners to provide enterprise customers with all stages from development to operation (End to End), they aim to evolve into a 'total cloud operator' that simultaneously functions as a Cloud Service Provider (CSP) and a Managed Service Provider (MSP).

CEO Kim Young-seop stated, “With global partnerships, KT will lead the leap to become a global AI and cloud hub beyond Korea and contribute to strengthening South Korea’s AI competitiveness.”