SK telecom, Naver go head-to-head in AI with different strategies

HyperCLOVA X logo. (Naver)

South Korean artificial intelligence (AI) majors SK telecom Co. and Naver Corp. are gaining industry attention as they pursue different strategies to expand the AI ecosystem.

According to industry sources on Sunday, the two companies are focusing on strengthening their AI ecosystem to seize leadership in the domestic market.

SK telecom is actively utilizes external AI models alongside its own model, A Dot X, while Naver is expanding its offerings through various derivative models centered around its large language model (LLM), HyperCLOVA X.

SK telecom is employing a multi-model strategy, collaborating with both domestic and international AI companies to develop technology and extend into service areas.

This approach goes beyond mere equity investments to establish close relationships leading to technical exchanges and actual commercialization, thereby increasing market influence.

A prime example is its collaboration with Anthropic PBC, aimed at internalizing a communication LLM for customer service by the end of the year.

“We expect to provide high-quality services as AI optimizes complex pricing and product structures based on individual circumstances, partially replacing personalized consumer consultations,” said an SK telecom official.

The company is currently testing AI in various service areas suited for the industry and expects to showcase visible results by the end of the year.

SK telecom is also developing a localized AI agent in partnership with U.S.-based Perplexity AI Inc.

SK broadband Co., a subsidiary of SK telecom, has integrated solutions from Lambda Inc., which offers cloud-based graphics processing unit (GPU) subscription services, into its new data center set to open next month in Gasan-dong, southwestern Seoul.

Through its AI personal assistant, A Dot, SK telecom provides eight types of AI services, including its own models and external models like OpenAI.

SK telecom also leads the K-AI Alliance, a consortium of AI startups, currently consisting of 23 member companies. Domestic AI semiconductor company Rebellions Inc., which is set to merge with Sapeon Korea Inc. by the end of the year, is also expected to join.

On the other hand, Naver is focused on expanding the AI ecosystem around its self-developed models.

Its AI agent CLOVA X, capable of understanding and processing both text and images, along with the AI search service and AI features operating on the Naver portal, are all built on proprietary technology. Naver‘s enterprise AI solutions also operate on its own models. This approach enables Naver to actively target niche markets that prioritize Sovereign AI, not only in Korea but also in countries like Japan and Saudi Arabia.

”Naver is building the HyperCLOVA AI brand and is expanding a specialized lineup of AI models for each sector,” said Ha Jung-woo, head of the Naver Cloud AI Innovation Center. “We differentiate ourselves from general models by offering optimized configurations tailored to sector-specific needs.

He noted that while most companies use multi-models, Naver plans to stick to this approach using its own models.

Naver shares its AI models only with select partner companies. As of the end of October, 71 companies and institutions have formed business alliances through HyperCLOVA X.

According to global market research firm Fortune Business Insights, the global generative AI market size is projected to grow to $967.7 billion in 2032, up from $67.18 billion this year.