Naver to create Arabic-based AI for the Middle East

Lee Hae-jin, Naver’s Chief Global Investment Officer (back row, left), along with key officials, is signing a business agreement at the ‘Global AI Summit 2024’ in Riyadh, Saudi Arabia, on the 10th.

Naver Corp. is teaming up with the Saudi Data & AI Authority (SDAIA) to develop a massive, Arabic-based language model (LLM). The move is seen as a positive signal for the export of Naver’s ultra-large AI model, HyperCLOVA X.

Naver announced on Thursday that Team Naver, including Naver Labs and Naver Cloud, signed a memorandum of understanding with SDAIA at the Global AI Summit held in Riyadh, Saudi Arabia on Tuesday local time.

The MoU outlines comprehensive collaboration in AI fields, including the construction of an Arabic-centered LLM, data center solutions, and cloud platform provision, as well as researching and developing intelligent robots and application services.

Saudi Arabia is focusing on enhancing its AI ecosystem, including building its own Arabic LLM called ALLaM, in 2024. SDAIA is a key organization under the direct supervision of Crown Prince Mohammed bin Salman, responsible for implementing national data and AI strategies.

The presence of Naver’s Global Investment Officer, Lee Hae-jin, at this Saudi trip underscores the importance of AI as a future key business for Naver. Lee recently emphasized the importance of Sovereign AI - AI that combines the concept of sovereignty with technology. This refers to the development and operation of AI systems that use a country’s own data and infrastructure to better understand and serve that country or region.

With big tech AI models rapidly spreading worldwide, Naver plans to accelerate its Middle East strategy based on this partnership.

Leading the delegation to Saudi Arabia, Lee met with key Saudi officials including Majed Al-Hogail, Minister of Municipal and Rural Affairs, Abdullah AIswaha, Minister of Communications and Information Technology, and Majid bin Abdullah Al Qasabi, Minister of Commerce.

The Saudi side reportedly highly valued Naver’s commitment to Sovereign AI and its technological capabilities, which have played a unique, significant role in propping up the South Korean search market. If the company is successful in exporting technology in Saudi Arabia, Naver’s Sovereign AI strategy and international business are expected to gain momentum.

Saudi Arabia, which announced a plan to invest $40 billion in AI in March 2024, has emerged as a strategic hub with significant global influence in the AI industry.

Naver was also tasked with developing an Arabic LLM-based Sovereign AI optimized for the Middle East. This collaboration will not only involve supporting the development of the AI model itself but also working from the infrastructure level, such as data center solutions in Saudi Arabia, to realize Sovereign AI.

“Our goal is to collaborate across the entire end-to-end range of Sovereign AI, from data centers to cloud services, LLM, and applications,” Naver Cloud Chief Executive Officer Kim Yoo-won said.

The dominance of a few big tech companies in AI development recently led to increasing demand for developing local LLMs in various countries. As AI also increasingly intersects with nationalism, there is growing interest in AI collaborations outside of the United States and China. Naver is particularly seen as a company striving to defend AI Sovereignty against U.S. and Chinese tech giants, creating opportunities for expansion.

Meanwhile, this latest MoU is accredited to Naver’s consistent efforts to penetrate the Saudi market. Team Naver and SDAIA plan to expand their collaboration beyond AI to include cloud, data centers, and robotics.