OpenAI has established a legal entity in South Korea and plans to open an office in Seoul in the coming months.

The company is hiring staff to support collaborations with local businesses and policymakers.

South Korea has the highest number of paying ChatGPT users outside the United States, making it a significant market for OpenAI.

This new office will be OpenAI’s third in Asia, after Japan and Singapore.

Jason Kwon, OpenAI’s chief strategy officer, is visiting several Asian countries to meet with government officials and industry partners. Their discussions focus on AI infrastructure and applications of OpenAI’s software.

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🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ South Korea offers ideal conditions for AI expansion with high tech adoption and robotics leadership

South Korea represents a strategic market for OpenAI, backed by the country’s exceptional technology adoption metrics and innovation culture.

The country maintains the world’s highest density of industrial robots with 631 robots per 10,000 human workers in manufacturing and 2,145 in the automotive sector, demonstrating an established comfort with advanced technologies 1.

South Korea’s consistent ranking as a top innovative economy according to the Bloomberg Innovation Index reflects substantial R&D investment, creating an environment where AI services like ChatGPT can find receptive business and consumer audiences 1.

OpenAI’s recognition that South Korea has the largest number of paying ChatGPT subscribers outside the US validates this technology-friendly ecosystem as fertile ground for expansion.

2️⃣ Strategic timing capitalizes on South Korea’s growing AI chip capabilities and semiconductor strengths

OpenAI’s expansion comes at a pivotal moment in South Korea’s AI infrastructure development, particularly in the critical semiconductor sector.

The recent merger between Rebellions and SK Telecom’s Sapeon created South Korea’s first AI chip unicorn valued at approximately $1 billion, signaling the country’s growing capabilities in AI hardware 2.

This domestic chip innovation is especially significant as Rebellions focuses on energy-efficient AI chips crucial for running large language models like those powering ChatGPT, with their new Rebel chip promising significant energy savings compared to industry-standard Nvidia chips 2.

The global AI chip market’s projected growth to exceed $92 billion by 2025 positions South Korea as an increasingly important hub for the hardware infrastructure that AI companies like OpenAI depend on 2.

By establishing a stronger presence in South Korea now, OpenAI gains proximity to these emerging chip innovations that could potentially reduce their massive computing costs while building relationships with key hardware partners.

3️⃣ Government support and AI-friendly policies provide favorable expansion environment

South Korea’s government has created a supportive policy environment for AI development that benefits OpenAI’s expansion plans.

The country has committed substantial resources to technology development, with government R&D investment reaching KRW 24.8 trillion, supporting a tech industry projected to grow rapidly through 2025 3.

South Korea’s active role in the OECD’s AI Group of Experts demonstrates its commitment to developing balanced AI governance frameworks that enable innovation while addressing ethical concerns 4.

The government’s focus on AI is reflected in its support for domestic companies, creating an ecosystem where OpenAI can find potential partners across multiple sectors, from healthcare (where over 20 AI medical solutions have received regulatory approval) to financial services 5.

Jason Kwon’s meetings with government officials highlight the importance of establishing good relationships with Korean policymakers who are actively shaping the regulatory landscape for AI deployment and use.

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