Samsung and Naver jointly develop generative AI and AI chips

Samsung Electronics and Naver Corp., two of South Korea’s tech giants, have agreed to jointly develop a generative artificial intelligence enterprise platform to compete with global AI tools such as ChatGPT.

In their artificial intelligence collaboration, South Korea's largest online search engine service Naver will obtain semiconductor-related data from Samsung to create a generative artificial intelligence, which will then be further upgraded by Samsung. Once developed, the Korean-language AI tool will be used by Samsung's Device Solutions (DS) unit, which includes its semiconductor business, people familiar with the matter said.

The two partners aim to launch the AI ​​tool as early as October. Following field testing, Samsung plans to expand the use of enterprise generative AI tools to the company's other businesses, including the Device Experience (DX) unit, which oversees the company's smartphone and home appliance businesses.

Through the partnership, Samsung will gain access to an in-house artificial intelligence tool that can increase the company's productivity while preventing potential leakage of trade secrets by using platforms developed by other companies. According to sources, Naver will improve its chances of successfully entering the global enterprise artificial intelligence market.

One of the main advantages of Samsung-Naver AI chatbot is that the tool is available in Korean. Naver Corp.'s artificial intelligence unit Naver Cloud said in February that it will launch a new hyperscale artificial intelligence platform HyperCLOVA X in July, an upgraded version of its earlier version HyperCLOVA, aiming to create an AI suitable for Korean services ecosystem.

Naver says HyperCLOVA

Samsung and Naver also plan to launch artificial intelligence chips in the second half of this year to compete with Nvidia Corp.’s graphics processing units (GPUs) that power AI platforms. The global artificial intelligence chip market is expected to grow to $70 billion by 2025 from $23 billion in 2020, according to market research firm Gartner.

Samsung’s drive to develop an in-house AI conversational bot has begun after its engineers accidentally uploaded source code (a trade secret) to ChatGPT for technical error checking. Earlier this month, Samsung said it was banning its DX division employees from using ChatGPT, Google Bard, Bing AI chatbot or other generative AI tools in the workplace.

Samsung, the world’s largest maker of memory chips and smartphones, has become the latest major South Korean company to express concerns about the use of generative artificial intelligence tools and privacy. In South Korea, SK Hynix, the world's second-largest memory chip maker, and POSCO Holdings, the country's largest steelmaker, have banned employees from using generative AI chatbots at work.

Some Wall Street banks, including JPMorgan Chase, Bank of America and Citigroup, have also banned or restricted the use of ChatGPT and other generative AI platforms.

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