OpenAI makes strategic push into Asia with Kakao partnership amid negotiations with SoftBank

Kakao Corp. becomes the first South Korean tech firm to collaborate with OpenAI, enhancing AI-driven innovation across its platforms.

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Kakao Corp. has become the first South Korean company to form a strategic partnership with OpenAI, marking a major step in the AI research firm’s expansion into Asia.

The collaboration aims to integrate OpenAI’s advanced models into Kakao’s platforms, including KakaoTalk and its upcoming AI assistant Kanana, while also co-developing AI-driven products tailored to the Korean market.

At a joint press conference in Seoul, Kakao CEO Jeong Shin-ah and OpenAI CEO Sam Altman detailed the partnership’s goals, emphasizing AI accessibility and innovation.

The companies will leverage OpenAI’s latest AI models to enhance Kakao’s services. Kakao will adopt ChatGPT Enterprise as part of its transition into an “AI-native company.”

Integrating OpenAI tech

OpenAI’s partnership with Kakao signals a strategic push into Asia amid growing competition from Chinese and European AI firms. With its high digital adoption rate and openness to AI-driven services, South Korea presents an attractive market for the company.

Altman described the collaboration as a significant milestone. He said:

“Kakao has a deep understanding of how technology enhances daily life. By integrating OpenAI’s AI models, we will redefine digital communication and connectivity in South Korea.”

This move follows OpenAI’s broader international expansion, which includes partnerships with global enterprises such as Microsoft. While OpenAI has primarily focused on enterprise AI applications, its collaboration with Kakao highlights its shift toward mass-market adoption in consumer services.

The integration of OpenAI’s models will transform KakaoTalk, which is used by over 45 million South Koreans, by enhancing conversational AI and automating personalized interactions.

Meanwhile, the firm’s AI assistant, Kanana, will incorporate OpenAI’s technology to facilitate more natural and contextual group and one-on-one conversations.

Kakao’s AI orchestration strategy, introduced at its developer conference last October, will also benefit from the partnership. This approach allows Kakao to blend its proprietary AI models with OpenAI’s technology to optimize user experience.

Softbank backing

OpenAI’s partnership with Kakao comes as other major AI players, including Google DeepMind and Anthropic, ramp up efforts to expand internationally.

While OpenAI has dominated the AI chatbot space in the US and Europe, South Korea presents a unique opportunity due to its high digital adoption rate and openness to AI-driven services.

The partnership with Kakao also comes a day after Japan’s Softbank announced a joint venture named SB OpenAI Japan. The 50-50 partnership aims to promote AI services, with plans to implement an AI system called “Cristal Intelligence” across SoftBank’s subsidiaries, including Arm Holdings and PayPay.

The initiative is set to commence with an annual budget of $3 billion.

Additionally, recent reports claim that SoftBank is in negotiations to invest between $10 billion and $25 billion in OpenAI, potentially making it the AI firm’s largest backer.

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