KT to supply Microsoft with $450M in network infrastructure for AI partnership

Korea's telecommunications provider KT said Monday it will provide $450 million worth of network and data center infrastructure to Microsoft over the next 15 years as part of their partnership on AI.

KT CEO Kim Young-shub, right, shakes hands with Microsoft CEO Satya Nadella after signing an agreement to collaborate in developing Korea-customized AI at the tech giant's headquarters in Redmond, Washington. [KT]

Korea's telecommunications provider KT said Monday it will provide $450 million worth of network and data center infrastructure to Microsoft over the next 15 years as part of their partnership on AI.

The collaboration, which also includes KT's cloud service unit, KT Cloud, follows a strategic partnership signed last Friday to advance AI, according to the Korean company in a filing.

Through the partnership, KT and Microsoft will jointly develop new AI models tailored to Korean language and culture, leveraging Open AI's GPT 4o and Microsoft's Phi over the next five years.

The companies also aim to introduce new cloud services catering to Korean corporate customers in the public and financial sectors, both of which are highly sensitive to regulatory and security requirements.

KT plans to establish a new company focused on AI transformation, offering customized AI solutions based on KT's IT capabilities and Microsoft's cloud platform.

The KT-Microsoft partnership will also include joint research projects with Microsoft Research, aimed at advancing AI technologies and future network innovations globally.

"This partnership with Microsoft is not just a technical collaboration but a significant opportunity to expand the AI base in Korea and advance breakthrough innovations in all industries and daily life," KT CEO Kim Young-shub said.

BY YOON SEUNG-JIN, YONHAP [yoon.seungjin@joongang.co.kr]