Tuesday, 1 July 2025
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Artificial Intelligence

South Korea Invests $4.18 Billion in AI to Compete with ChatGPT

  • South Korea plans a homegrown AI model amid data security concerns with Chinese AI like DeepSeek.
  • A $4.18 billion investment will support AI infrastructure, startups, and cloud computing.
  • The National AI Computing Center will acquire 10,000 GPUs in 2025 to enhance AI capabilities.

South Korea is accelerating its AI development efforts with a massive $4.18 billion investment, positioning itself as a key player in the global AI race. Acting President Choi Sang-mok announced plans for a homegrown large-scale language model (LLM) to rival ChatGPT, citing concerns over data security and the dominance of foreign AI technologies.

The country is also making significant strides in AI infrastructure by fast-tracking the National AI Computing Center, which will acquire 10,000 GPUs by 2025.

South Korea’s AI Push: $4.18 Billion Investment to Challenge Global Giants

South Korea’s government is making AI a national priority, with a strategic push to develop an advanced homegrown language model. Concerns over data security, particularly with Chinese AI models like DeepSeek, have fueled the urgency to establish sovereign AI capabilities. This move aligns with the country’s broader ambition to be among the top three global AI leaders.

A key component of this initiative is the National AI Computing Center, which is set to house 10,000 GPUs by 2025. This facility will provide critical infrastructure for AI research and development, reducing reliance on foreign cloud providers. By expanding access to public and industrial data, the government aims to create an environment conducive to AI innovation.

Beyond infrastructure, South Korea is heavily investing in AI talent and research. A $695 million AI research initiative is being evaluated to secure proprietary general-purpose AI technologies. Additionally, a $2.09 billion AI startup fund will support 100 companies specializing in high-impact areas such as healthcare, law, and security.

With substantial tax incentives and a supportive regulatory framework, South Korea is ensuring that both startups and established enterprises have the resources to compete globally. By fostering AI development domestically, the nation is positioning itself as a leader in AI-driven innovation, reducing its dependence on external technologies.

South Korea’s bold AI strategy reflects its commitment to technological independence and global competitiveness. With significant funding, infrastructure, and policy support, the country is laying the groundwork for a self-sufficient AI ecosystem that could challenge industry leaders.

“The best way to predict the future is to create it.” – Peter Drucker

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