KT, which developed its own AI model named ‘Mideum,’ has joined hands with Microsoft. As Microsoft increases its investments in AI-related ventures globally to pursue localization strategies, it has chosen to collaborate with KT in the domestic market.
KT announced on the 4th that it has signed a strategic partnership agreement with Microsoft in the fields of AI and cloud. The signing ceremony took place at Microsoft’s headquarters in Washington State, with KT CEO Kim Young-seob and Microsoft CEO Satya Nadella present. Although the exact investment amount was not disclosed, industry analysts estimate it to be in the trillions of won.
While Microsoft has been expanding its global AI investments throughout the year, South Korea had not been part of it until now. On the same day, Microsoft announced a 337 billion Swedish krona (approximately 4.4 trillion won) investment in Sweden for AI and cloud infrastructure expansion over two years. In April, they also committed to investing $29 billion (approximately 3.99 trillion won) in Japan by next year to expand AI and cloud operations, as well as strengthen AI computing GPUs at data centers in Tokyo and Osaka. They are also making substantial investments in Southeast Asia, including $2.2 billion in Malaysia and $1.7 billion in Indonesia, to build AI infrastructure.
In the industry’s perspective, this strategic partnership between KT and Microsoft is seen as part of Microsoft’s localization strategy. Although it differs slightly from Microsoft’s direct investments in local markets, KT explains that this partnership holds more significant meaning beyond mere technological cooperation. By jointly investing and launching services, it signifies a higher-level partnership rather than just a business agreement. KT CEO Kim Young-seob expressed, “I consider it meaningful to be able to evolve into an AI innovation partner with Microsoft after around six months of discussions since the end of last year.”