Naver’s HyperClova X gains traction: Report

[Courtesy of Naver]

As South Korean platform giant Naver Corp. has been ramping up efforts to expand its market presence in the business-to-business (B2B) sector with its in-house large language model (LLM) HyperClova X at its core, a recent report found that nearly 700 startups and research organizations have adopted HyperClova X. Naver began developing its initial LLM-based service, HyperClova, in 2021 and launched the updated HyperClova X product in August 2023.

According to the report released by Naver on Tuesday, HyperClova was used by a total of 700 technology and research institutions nationwide. The tech platform also recently embarked on a project called Naver AI Rush 2023 to support tech startups while promoting the broader use of both HyperClova X and its cloud platform and offered a supportive fund of 2 billion won ($1.5 million) to startups participating in the project.

The project also serves as a catalyst for expanding Naver’s reach in the tech ecosystem, as it engages startups in using the platform’s cloud, artificial intelligence (AI), and big data technologies for their services.

Naver said the investments it has made over the past five years in AI research and development (R&D) amounted to 1 trillion won, with a staggering 22 percent of the revenue last year spent on R&D endeavors.

Naver has also been placing a strategic bet on Neurocloud for HyperClova X, an AI solution set to be launched by Naver Cloud Platform in October. The upcoming service is a hybrid cloud solution designed for enterprises, allowing them to develop their own AI models without any concern of security breaches or data leaks.

Naver’s Chief Executive Officer Choi Soo-yeon expressed confidence in the upcoming service in her recent interview with the Maeil Business Newspaper, noting that “Neurocloud is a solution that only Naver can offer to B2B customers in this market, as it allows companies to create super-sized AI in the format they want without exporting data.”

The platform has made efforts to become competitive in a B2B market that has been increasingly dominated by big tech firms in the United States, including Google, according to market analysts.