South Korea Unveils $390 Million Plan to Develop Homegrown AI Rivals to OpenAI and Google

South Korea Launches Ambitious Sovereign AI Initiative with $390 Million Investment Last month, the South Korean government launched its most ambitious sovereign AI initiative to date, pledging 530 billion won (approximately $390 million) to five local companies building large-scale foundational models. The move aims to reduce reliance on foreign AI technologies and strengthen national security. Key Players and Timeline The selected companies are LG AI Research, SK Telecom, Naver Cloud, NC AI, and the startup Upstage. Each player brings a unique advantage to South Korea's AI race: LG AI Research is developing ExaOne, a large language model tailored to Korean language and culture; SK Telecom is focusing on natural language processing; Naver Cloud is leveraging its expertise in cloud computing; and Upstage is working on multimodal AI. The government will review the first cohort's progress every six months, cutting underperformers and continuing funding for frontrunners until just two remain to lead South Korea's sovereign AI drive. The initiative kicked off last month, with a timeline of five years to develop and deploy these large-scale foundational models. Immediate Impact and Response The announcement has sent shockwaves through the global AI community, with many experts hailing it as a significant step towards reducing dependence on foreign AI technologies. "This is a bold move by South Korea to take control of its own AI destiny," said Dr. Lee, a leading AI researcher at Seoul National University. Background Context South Korea's desire to develop its own AI capabilities stems from concerns over data security and national sovereignty. With the increasing reliance on foreign AI technologies, the government aims to strengthen its position in the global AI landscape. What Happens Next As the initiative unfolds, TechCrunch will continue to monitor progress and provide updates on the development of these large-scale foundational models. The selected companies are expected to share their milestones and achievements with the public, offering a glimpse into South Korea's ambitious plans for sovereign AI. *This story is developing. Information compiled from Techcrunch reporting.*