South Korea narrows sovereign AI mannequin race, chopping Naver and NCSoft groups

Determination sharpens deal with “from-scratch” requirements as authorities clarifies independence guidelines

The Ministry of Science and ICT stated on Jan. 15 that groups led by Naver and NCSoft have been eradicated from the government-backed competitors to develop a sovereign synthetic intelligence basis mannequin. The choice adopted the completion of the first-round analysis of the nationwide program, which is aimed toward constructing a homegrown AI system with out counting on U.S. or Chinese language expertise.

Advancing to the subsequent stage are groups led by LG AI Analysis, SK Telecom and Upstage. Individuals acquainted with the matter stated the Naver and NCSoft teams that have been reduce haven’t any plans to re-enter, leaving a smaller discipline because the analysis course of turns into extra rigorous.

How the competitors has progressed

The sovereign AI mannequin competitors started with 15 candidates and was narrowed to 5 finalists in August. Beneath the present roadmap, the remaining groups will face periodic opinions and extra eliminations, with the federal government planning to pick out two last winners by 2027.

Officers have described this system as a central pillar of South Korea’s ambition to change into a top-tier world AI energy, amid rising issues over dependence on overseas basis fashions and core AI applied sciences.

Analysis standards and early outcomes

The ministry stated the analysis lined a spread of things, together with technical functionality, coverage compliance and moral requirements. Based mostly on the first-round outcomes, groups led by NC AI and Naver Cloud have been reduce from the competitors, following the sooner exit of a Kakao-led consortium.

In response to the ministry, LG AI Analysis, SK Telecom, and Upstage ranked highest general when benchmark assessments, professional evaluations, and consumer assessments have been mixed. The outcomes drew sturdy curiosity from the {industry}, notably as questions emerged over how strictly “impartial growth” can be interpreted.

The independence debate involves the fore

The elimination of Naver has underscored the federal government’s place on what qualifies as an impartial AI basis mannequin. Earlier this month, allegations surfaced that Naver had used imaginative and prescient and voice encoders, together with skilled weights, from China-based Alibaba’s Qwen mannequin. Whereas Naver argued that its core AI engine—the “mind” of the system—was developed in-house, the federal government took a distinct view.

“Within the world AI ecosystem, it is not uncommon to make the most of open supply,” the ministry stated, including that “the essential situation for an impartial AI mannequin is to initialize weights and conduct authentic coaching.” Utilizing skilled outcomes developed by others, even when open supply, doesn’t meet that normal, it stated.

This interpretation is more likely to affect how remaining groups design their fashions and the way future government-backed AI initiatives outline technological independence.

Wild-card plan meets {industry} reluctance

Alongside the shortlist announcement, the ministry revealed a beforehand undisclosed plan to introduce a “wild-card” or repechage spherical, permitting one extra consortium to reenter the competitors at a later stage. Groups eradicated in earlier rounds can be eligible to use once more.

Regardless of this feature, main platform firms signaled little urge for food to return. Kakao stated it has no plans to rejoin the race, whereas Naver stated it respects the ministry’s choice and won’t search reconsideration. NC AI additionally stated it can choose out, including that it intends to deal with industry-specific AI and different applied sciences that might contribute to nationwide industries.

Considerations over momentum and incentives

Business observers warned that the dearth of curiosity from massive gamers may weaken momentum behind the repechage plan. One {industry} official stated the danger of being eradicated once more, mixed with unclear advantages from continued participation, might deter firms from reentering what’s a resource-intensive and extremely aggressive course of.

Because the competitors enters its second stage, consideration is now shifting to how the federal government balances its push for strict technological independence with the sensible realities of contemporary AI growth. The result is anticipated to form not solely the ultimate sovereign AI mannequin, but additionally South Korea’s broader method to defining and supporting homegrown AI within the years forward.