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OpenAI finds ally in South Korea’s Kakao following DeepSeek’s rise

Modupeoluwa Olalere by Modupeoluwa Olalere
February 5, 2025
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OpenAI finds ally in South Korea's Kakao following DeepSeek's rise

OpenAI finds ally in South Korea's Kakao following DeepSeek's rise

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On Tuesday, OpenAI announced a new partnership with Kakao, a leading South Korean tech company. This collaboration comes as OpenAI faces growing competition from DeepSeek, a Chinese AI firm that has rapidly gained traction with its cutting-edge and affordable AI solutions. 

During a press event in Seoul, OpenAI’s CEO, Sam Altman, expressed his enthusiasm for the alliance and stressed how Kakao’s expertise could help deliver innovative experiences to millions of users.

Read also: OpenAI unveils Deep Research for speedy responses to complex research queries

OpenAI joins forces with Kakao

The partnership will see OpenAI’s ChatGPT technology integrated into Kakao’s ecosystem, including its widely used messaging app, KakaoTalk. The collaboration aims to develop AI-powered tools tailored for South Korean users, such as a Korean-language assistant named Kanana.

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Altman stated about the partnership, “Kakao has a deep understanding of how technology can enrich everyday lives, and they’ve consistently delivered innovative experiences for their users.”

Kakao’s services extend beyond messaging, including ride-hailing, online banking, and e-commerce. Integrating OpenAI’s technology will enhance these platforms by automating tasks and improving user engagement. Additionally, Kakao plans to adopt ChatGPT Enterprise internally to streamline operations and boost efficiency.

Read also: OpenAI unveils smarter o3-mini AI for enhanced math, coding queries

DeepSeek’s rise sparks strategic moves

OpenAI’s collaboration with Kakao comes as DeepSeek is disrupting the AI market with its advanced models and competitive pricing. The rise of DeepSeek has prompted U.S. tech companies to rethink their strategies to maintain their edge in the global AI race. By partnering with Kakao, OpenAI strengthens its foothold in Asia while addressing the growing competition.

Altman is also exploring partnerships with other South Korean tech giants, such as Samsung and SK Hynix, to develop custom chips for AI applications. 

He explained, “We’re excited to bring advanced AI to Kakao’s millions of users and work together to integrate our technology into services that transform how Kakao’s users communicate and connect.”

As OpenAI navigates this evolving market, its alliance with Kakao represents a bold step toward expanding its reach and delivering localized AI solutions that resonate with diverse audiences.

Tags: DeepSeekKakaoOpenAISouth Korean
Modupeoluwa Olalere

Modupeoluwa Olalere

Modupe is a tech content writer with 3+ years of experience turning complex ideas into clear, engaging stories. She covers innovation, digital trends, and emerging technologies. When she’s not writing, she’s exploring new tools or tracking trends shaping Africa’s tech ecosystem.

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