Major tech firms, startups throw hats into ring for public AI initiative

Major tech firms, startups throw hats into ring for public AI initiative

Kakao, LG U+ and other companies are joining or weighing bids for a government-backed project to launch free public AI services this year.

Major tech companies and startups have either declared or are reviewing participation in a government-backed project to build an AI service accessible to everyone for free, industry sources said Tuesday.

The science ministry's "AI for All" project is part of the government's efforts to create what it calls an "AI basic society," where people can use AI services regardless of income, age or digital literacy.

The project, which opened applications early this week, will include a general-purpose AI chatbot service available to the public free of charge as well as a public-service AI agent.

The government plans to provide up to 512 B200 graphics processing units from Nvidia to two or three selected companies. They are expected to launch a service within this year.

Starting next year, the government plans to provide budget support to cover expenses to run the models nationwide.

Developers will be required to use Korean AI models that meet the ministry's independent foundation-model standards for at least 50 percent of the system.

In a bid to diversify the local AI ecosystem, companies with their own foundation models must use AI models developed by other local companies for more than 30 percent of their systems.

Applications will be open until Aug. 11.

According to industry sources, major companies that have declared their bid in the project are Kakao, a messenger app operator, and LG U+, a local telecommunications service provider.

Portal giant Naver and two other telecom operators — KT and SK Telecom — are also "positively" considering participating, sources said.

AI-related startups and mid-sized firms are reportedly preparing to participate and are seeking to form a consortium, industry watchers said.

Mid-sized local software developer ESTsoft has declared the group's bid to participate in the project.

Startup Upstage, which has its own foundation AI model called Solar, as well as AI search and research startup Liner are said to be under consideration but have yet to decide whether to apply independently or through a consortium.

The AI subsidiary of game developer NC has also expressed intent to review participation, according to industry sources.