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The deal includes the creation of a “Korea-customised” AI model based on OpeAI’s GPT-4o
South Korean telco Korea Telecom (KT) and Microsoft have announced a five-year, multibillion-dollar partnership to drive AI innovation across the country. The collaboration will bring AI-powered solutions to over 650,000 businesses and 17 million consumers, with a focus on industries such as finance, healthcare, and education, the companies have said.
A key aspect of the partnership is the development of AI models tailored specifically for the Korean market. KT and Microsoft will collaborate on a localised version of OpenAI’s GPT-4o, which will use KT’s data to create AI solutions for both consumer-facing and enterprise applications. These models will be developed through Microsoft’s Copilot Studio and Azure AI Studio.
The two companies will also launch sovereign cloud services for Korea’s public sector and regulated industries. KT’s “Secure Public Cloud,” built on Microsoft’s Cloud for Sovereignty, will help businesses and government agencies follow data security rules while using the latest AI and cloud technology.
“The partnership with Microsoft presents a pivotal opportunity, not only for technological collaboration but also for expanding Korea’s AI foundation and driving transformative innovation across industries and daily life,” said KT CEO Young-Shub Kim in a press release. “Leveraging this strategic partnership, we aim to rapidly evolve into an AICT company with unparalleled competitiveness in domestic and global markets.”.
“We will help accelerate the AI transformation of Korean organizations across the private and public sector and build new AI-powered experiences for millions of consumers,” echoed Microsoft Chairman and CEO Satya Nadella.
To help businesses adopt AI, KT will launch a new company that focuses on delivering Microsoft-powered AI solutions to enterprises, which is set to later expand into the wider Southeast Asian market. Microsoft will provide support and consulting to build the company over the next three years.
KT and Microsoft will also set up a co-innovation center to boost AI research in South Korea. This center will help businesses develop new AI solutions and will support AI startups to drive innovation across the company.
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