South Korea Launches $700M AI Sovereignty Push to Challenge OpenAI and Google
South Korea has unveiled its most ambitious AI initiative yet, with major tech players like LG and SK Telecom developing homegrown large language models. The government is investing over $700 million and assembling a "national AI team" to create a ChatGPT competitor, while securing 10,000 high-performance GPUs to accelerate AI development and reduce dependence on foreign AI systems.
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How South Korea plans to best OpenAI, Google, others with homegrown AI
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South Korea Unveils Plan to Develop Its Own ChatGPT with $700M AI Investment
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Presidential National Artificial Intelligence Strategy Committee Launched... 'AI Action Plan' to Be Established by November
National AI Team Formation and Strategic Investment
South Korea is assembling a "national AI team" to spearhead development of advanced large language models, backed by over 1 trillion won ($700 million) in government investment focused on artificial general intelligence technologies. Acting President Choi Sang-mok announced this initiative during a high-level committee meeting, emphasizing the need to strengthen AI capabilities through enhanced public-private cooperation. The government will establish a national AI computing center and secure an additional 8,000 GPUs by mid-2026, bringing the total to 10,000 high-performance units—a five-fold increase from the 2,000 available in late 2023.
Corporate Players and Competitive Positioning
Major South Korean tech companies including LG and SK Telecom are actively developing their own large language models as part of the nation's most ambitious sovereign AI initiative to date. The "World's Best LLM" project will provide leading AI teams with extensive GPU resources and research funding to create a homegrown ChatGPT-style model capable of competing globally. This strategic move comes as global AI competition intensifies, particularly between the U.S. and China, with South Korea positioning itself as a major player in the field.
Infrastructure Development and Data Security Focus
The government plans to launch an AI model-sharing system allowing both public and private sectors to access and utilize AI technologies across various applications. Tax incentives for AI and cloud technology development will encourage private-sector investment in AI infrastructure. Data security remains a priority, with regulators already suspending new downloads of DeepSeek due to concerns over data collection practices and potential user data leaks that raise legal concerns under South Korean law requiring explicit user consent for third-party data sharing.
Startup Ecosystem and Talent Development
South Korea will launch a 3 trillion won ($2.2 billion) AI startup fund by 2027 to support emerging AI companies and foster collaboration with major corporations. The government plans to host a global AI challenge for young researchers and expand support for both domestic and international AI experts as part of efforts to nurture talent. A Presidential National Artificial Intelligence Strategy Committee has been established to develop an comprehensive "AI Action Plan" by November, representing the highest-level coordination body for the nation's AI ambitions.