Naver strives to expand presence in the Middle East with HyperCLOVA X

Chae Seon-ju, president of ESG and External Policy at Naver

South Korean internet giant Naver Corp. is gearing up to expand business in Saudi Arabia and other parts of the Middle East with its self-developed large-scale language model (LLM) HyperCLOVA X.

“The Middle East, particularly Saudi Arabia, has a desire to build its own LLM platforms to reduce dependence on artificial intelligence (AI) powerhouses, such as the United States,” said Chae Seon-ju, president of ESG and External Policy at Naver, in an interview with Maeil Business Newspaper last week.

LLMs today have emerged as a powerful tool to protect and ensure data sovereignty amid increasingly intensifying tech competition between the U.S. and China.

Saudi Arabia is reportedly exploring partners other than the world’s two biggest powerhouses.

“I was convinced that Saudi Arabia has growing interest in Naver, a competing rival of Google,” Chae said.

In October, Naver won a contract to build and operate so-called Digital Twin platform for Saudi Arabia’s Ministry of Municipal and Affairs and Housing (MOMRAH), a deal worth of 130 billion won ($100 million).

Following the contract, Naver plans to sell a range of solutions, including HyperCLOVER X-related technologies and artificial intelligence (AI) models built on local data, according to industry sources.

Saudi Arabia is set to build digital twins of five cities, including Riyadh, Medina and Mecca, for city planning, monitoring, and flood forecasting over the next five years based on Naver’s technology.

“After the buildup, Naver will be in charge of operating the platforms,” Chae said.

The deal is not seen as a one-time sale, with Chae expressing the potential for growth beyond the initial digital twin contract.

“We are in talks with Saudi Arabia on additional deals involving other technologies,” Chae said.

According to industry sources familiar with the matter, Naver is expected to establish a local corporation in Saudi Arabia in the first quarter of 2024.

Chae hinted that Saudi Arabia has shown interest in so-called AI-Robot-Cloud (ARC) system. The ARC system, an advanced multi-robot intelligence system, is an open-access technology that boasts seamless compatibility with various applications and platforms from different companies.

Chae emphasized that ARC stands out as the most innovative system poised to drive the widespread adoption of service robots.

Naver ranks in the top 20 percent globally for research and development investment.

“Our unwavering commitment to technology investment, evident since the inception, will create more opportunities beyond the Middle East,” Chae said.