What's Happening?
SK Telecom, a major player in South Korea's telecommunications sector, is making significant progress in AI technology development. The company launched its personal AI agent service, A., in late 2023 and recently introduced its large language model, A.X, in July. A.X is built on the Chinese open-source model from Alibaba Cloud, Qwen 2.5, and comes in two versions: a 72-billion-parameter model and a lighter 7-billion-parameter model. SK Telecom aims to leverage its telecom infrastructure and extensive user base to integrate AI into everyday life, enhancing services such as customer service, mobility, and manufacturing. The South Korean government has also announced a ₩530 billion sovereign AI program to reduce reliance on foreign AI technologies, with local companies like SK Telecom and LG AI Research receiving funding to develop large-scale Korean-language AI models.
Why It's Important?
The development of homegrown AI technologies by SK Telecom and other South Korean companies is crucial for the nation's strategic independence in the AI sector. By reducing reliance on foreign AI technologies, South Korea aims to strengthen national security and maintain tighter control over data. This initiative could position South Korea as a competitive player in the global AI market, challenging established giants like OpenAI and Google. The integration of AI into various industries could lead to significant advancements in customer service, mobility, and manufacturing, potentially boosting economic growth and innovation within the country.
What's Next?
The South Korean government plans to review the progress of the companies involved in the sovereign AI program every six months, cutting underperformers and continuing to fund the frontrunners until only two remain to lead the country's AI drive. SK Telecom is investing in AI infrastructure, including GPUaaS and a new hyperscale AI data center with AWS. The company is also building a full-stack ecosystem with Korean AI chipmaker Rebellions and collaborating with MIT on projects related to advanced manufacturing and semiconductor innovation. These efforts are expected to enhance SK Telecom's AI capabilities and contribute to South Korea's overall AI strategy.
Beyond the Headlines
The push for homegrown AI technologies in South Korea highlights broader ethical and cultural dimensions, such as data sovereignty and the preservation of local language and culture in AI models. By developing AI technologies tailored to Korean language and culture, South Korea can ensure that its AI systems are more relevant and effective for its population. This approach also raises questions about the balance between global collaboration and national interests in the AI sector, as countries seek to protect their data and technological advancements while engaging in international partnerships.