Naver to unveil enhanced AI HyperClova X Aug. 24, seek service integration

[Courtesy of Naver]

South Korea’s tech giant Naver Corp. will build a business-to-business transaction alliance focusing on HyperCLOVA X, its first large language model (LLM), and seek service integration.

According to information technology (IT) industry sources on Wednesday, Naver will unveil HyperClova X on August 24 and present a blueprint for AI partnerships in commerce, mobility, and finance sectors.

Companies such as SK C&C Co. and SoCar Inc. are expected to utilize HyperCLOVA X to upgrade mobility services and develop tailored services in various fields of finance such as banking, securities, and cards.

Global tech companies have been building LLMs and recruiting customers for utilization. Naver, which was late in announcing its LLM, is pushing for service integration at the same time in an effort to swiftly catch up with others.

“Major tech companies have introduced cutting-edge technologies, but they are currently facing difficulties in terms of cost and other aspects of B2C business,” said an industry insider. “Since B2B is the core market for Naver, it will be interesting to see if the tech giant’s leapfrogging strategy will work.”

Leapfrogging is seen as a strategic option for domestic companies to compete against global tech companies in the highly competitive giant AI market. Leapfrogging can be a positive strategy because there is already a certain level of foundation in place in the country.

Korea is one of only four countries, along with the U.S., China, and Israel, to have its own super-sized AI model. Companies like Naver, Kakao Corp., LG, SK telecom Co., and KT Corp. already possess or are developing their own LLMs.

In particular, Naver unveiled Korea’s first hyper-scale AI “HyperCLOVA” in 2021. Companies utilizing its hyperscale AI development tool “CLOVA Studio” have already reached over 700 as of June.

According to U.K. data analysis firm Tortoise Intelligence, Korea ranks sixth in overall AI capabilities after the U.S., China, Singapore, the U.K., and Canada. The ranking scores AI infrastructure, operational environment, research and development, government policy, and commercialization.

The IT industry anticipates the first half of this year to be a period for building super-sized AI and the second half to see a proliferation of various AI services.

U.S. tech companies have also recognized the trend. Google LLC has been expanding its ecosystem by securing 70 percent of the world’s top 100 unicorns, or startups with a value of over $1 billion, as customers, including the top 10 technology companies.