Korean AI market draws global startups, big tech investments

[Courtesy of WEKA]

South Korea’s artificial intelligence (AI) industry is receiving attention from many global AI startups, including those based in U.S. Silicon Valley, raising hopes for a boost in the overall ecosystem. Global tech companies such as Nvidia Corp. and Advanced Micro Devices Inc. (AMD) are also investing in Korean startups.

WEKA, an AI data platform software provider based in Silicon Valley, announced Thursday that it has established a Korean branch in Gangnam, southern Seoul.

WEKA has presence in 20 countries globally, but it is the first time that the company has established an office in the Asia-Pacific region.

In a press conference on Thursday, Liran Zvibel, co-founder and chief executive officer of WEKA, said that Korea is one of the fastest growing and most innovative AI markets in the world.

Tricentis, a U.S.-based AI-based company specializing in software testing and quality engineering automation, also announced Wednesday that it has set up a Korean branch.

Korea has become the fourth country in Asia-Pacific where Tricentis has an overseas office, following Australia, Singapore, and India.

Singapore-based data infrastructure provider KAYTUS also made its entry into the Korean market earlier this month with the launch of its local office, Katus Korea.

Global tech companies, in the meantime, are investing in Korean startups.

Video-understanding AI startup Twelve Labs Inc. announced Thursday that it has raised $10 million in investment from Nvidia, Intel Corp., and Samsung Next LLC.

It is the first time Nvidia has directly invested in a Korean AI startup.

U.S. AI chipmaker AMD also joined KT Corp. in a $22 million Series B investment in local AI infrastructure solutions startup Moreh Inc. this month.

Global companies are eyeing Korea’s AI market as demand surges with the rapid spread of generative AI.

“Compared to other countries, Korea has a very low cloud conversion rate due to its well-developed on-premises IT infrastructure,” said a cloud industry official. “It is a market with great potential for growth.”