Big Tech AI Arms Race Intensifies as Naver and Kakao Pursue Unique Strategies

OpenAI and Meta Vie for Dominance with Next-Generation AI Development
The race to lead the generative AI market is heating up amongst big tech companies as they accelerate the development of cutting-edge AI technologies. OpenAI is swiftly progressing towards releasing GPT-5, while Meta is not far behind with its potential launch of LLaMA3. These moves signify a fierce competition for control over the generative AI sector.

Naver Focusing on ‘Sovereign AI’ to Cater to Non-English Speaking Regions
Instead of directly confronting global tech giants, Naver is tactically targeting non-English speaking countries, likely due to its disadvantage in generative AI performance against the tech behemoths. Despite efforts to specialize in Korean-language AI through the launch of HyperCLOVA X, Naver’s technology has not shown a significant edge over big tech counterparts. Even with the evaluation by a domestic open-source LLM research team demonstrating HyperCLOVA X’s superior performance over some, it still lags behind GPT-4. Naver Cloud’s CLOVA X and ‘Cue:’ have not managed to enter the top 50 in the world rankings for generative AI usage.

The company’s expansion strategy in non-English speaking regions is still in its early stages, with notable progress primarily in Saudi Arabia. Naver has recently upgraded HyperCLOVA X with the launch of the more advanced HCX-003, and is doubling down on its development to cater to more businesses. They have also partnered with Samsung Electronics on an AI semiconductor ‘Mach-1’ and are collaborating with Intel to refine AI services, leveraging Intel’s AI accelerator Gaudi2 for the expansion of LLM and software ecosystems.

Kakao Postpones Launch of CoGPT 2.0 to Strengthen Service Ecosystem
Kakao is focusing on enhancing its service offering before the release of generative AI CoGPT 2.0. The company is considering a merger of its AI subsidiary Kakao Brain into the corporate structure to better integrate and implement AI services with its existing offerings. Industry speculators anticipate that Kakao will present a specialized, efficient small LLM model with CoGPT 2.0, aimed at bolstering the generative AI ecosystem.

Additionally, as part of its service expansion, Kakao is building alliances with big tech companies. It recently joined the ‘AI Alliance,’ a collective formed in opposition to tech giants like Google and OpenAI. With a focus on open-source AI promotion, the alliance includes major entities like IBM, Meta, and Intel, alongside numerous other collaborators. Kakao aims to align domestic AI standards with global benchmarks and ensure that Korean criteria are considered in global standardization efforts. The focus is on AI safety and policy instead of mere technical collaboration for standardized verification of AI stability.

Key Questions and Answers:

What is the current focus of Naver in the Big Tech AI arms race?
Naver is concentrating on ‘Sovereign AI’ tailored primarily for non-English speaking regions. By developing AI technologies such as HyperCLOVA X and the advanced HCX-003, Naver aims to cater to the unique demands of these markets. The company is also forming strategic partnerships, such as those with Samsung Electronics for AI semiconductors and Intel for AI services expansion.

How is Kakao positioning itself in the generative AI market?
Kakao has postponed the launch of its generative AI, CoGPT 2.0, to enhance its service ecosystem. It plans to create a specialized small LLM model that complements its service offerings seamlessly. Meanwhile, Kakao is joining forces with other big players through the ‘AI Alliance’ to promote open-source AI, standardize AI policies, and ensure Korean AI industry interests are represented globally.

Key Challenges and Controversies:

Competition with Global Giants: Both Naver and Kakao must innovate continuously to keep up with international behemoths like Google, OpenAI, and Meta that have larger resources for AI development.

Global Standardization: Ensuring that Korean-developed AI technologies and standards align with international benchmarks and contribute meaningfully to the global conversation on AI is an ongoing challenge.

AI Safety and Ethics: As AI becomes increasingly powerful, questions concerning the ethical use, bias, and safety of AI are critical. Palpable tension exists between rapid technological advancement and the need for comprehensive safety and ethical guidelines.

Advantages and Disadvantages:

Advantages:
Naver’s sovereign AI strategy allows for targeted innovation that caters to local languages and cultural nuances, potentially offering superior services to specific regions.
Kakao’s integration of AI into its corporate structure is likely to ensure better synergy across its services, strengthening its overall ecosystem.

Disadvantages:
Resource Disparity: Naver and Kakao face the challenge of competing against larger companies with more funds and data.
Delayed Market Entry: Postponing launches or scaling efforts might mean losing ground to competitors who are continuously pushing out newer AI capabilities.

Related Links:
– For information about OpenAI’s developments, visit OpenAI.
– To learn about Meta’s AI programs, go to Meta.
– Insights on AI safety and ethics can be found on the Partnership on AI website.

The source of the article is from the blog macholevante.com

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