NHN, Naver Cloud, Kakao, and Coupang Join Bidding for '10,000 GPU Operation' Project

The Ministry of Science and ICT announced on June 23 that a total of four applicants had submitted proposals for participation in the advanced graphics processing unit (GPU) operation project, which involves the deployment of 10,000 GPUs. Industry sources believe that consortia led by NHN Cloud, Naver Cloud, Kakao, and Coupang have each entered the competition to secure GPUs.

This GPU operation project was launched after the Ministry of Science and ICT officially announced in February its plan to secure 10,000 GPUs within the year. Under the project, private companies place orders for and operate the GPUs, while the government provides financial support for the purchase costs. The ministry has secured a budget of 1.46 trillion won for GPU procurement through the first supplementary budget. A ministry official stated, "Instead of providing separate operational expenses for five years, we have allowed operators to use a portion of the GPUs for their own purposes," adding, "The proportion of GPUs available for self-use can be utilized by operators both for the development of their own AI technologies and for business purposes."

The Ministry of Science and ICT will conduct a series of procedures for the applicants, including a review of submitted documents, a presentation evaluation (with a preliminary written evaluation if necessary), an on-site inspection of data centers, and a review and adjustment of project costs. The ministry plans to select the final operator and sign an agreement next month. The final selected operator will be announced after the agreement is concluded.

Among the four applicants, Coupang, a retail company, is not traditionally classified as a cloud service provider (CSP), but is reportedly attempting to enter the AI business, such as operating AI data centers. Coupang is said to be close to signing a contract for a data center with Empyrion Digital, a Singapore-based data center construction company, to open a 40MW (megawatt) facility in Yangjae-dong, Seoul. It is observed that Coupang hopes to operate government-owned GPUs at this location.