Microsoft Corp. and KT Corp. are set to pour 2.4 trillion won ($1.8 billion) into South Korea’s artificial intelligence and cloud infrastructure over the next five years. The collaboration, announced Thursday, targets the creation of a dedicated AI model for the country by the first half of 2025.
KT’s CEO, Kim Young-shub, emphasized the need for swift implementation of user-desired features, downplaying cost-effectiveness concerns. The telecom giant plans to establish an AI transformation subsidiary in Q1 2025, offering consulting and design services.
The partnership aims to develop an AI model based on OpenAI’s GPT-4 and introduce industry-specific versions using Microsoft’s Phi-3.5 small language model. KT’s CTO, Phil Oh, indicated the company would focus on supplying customized small language models for corporate clients, rather than competing in the large language model market dominated by tech giants.
Despite the substantial Microsoft collaboration, KT remains open to partnerships with other companies. The telecom firm also plans to hire about 1,000 ICT specialists this year, although it faces challenges in talent acquisition.
Through this initiative, KT aims to boost its AI transformation business revenue to 1.4 trillion won by 2029, a significant increase from the projected 269 billion won in 2025.
