Circles, a telecom tech company based in Singapore, has announced a partnership with OpenAI to develop an AI-native platform for telco operators.

The platform will first launch in Singapore, powering Circles Life’s app, and is expected to roll out to Circles’ partners in other markets.

Circles said the collaboration will provide access to OpenAI’s early-stage models and research, aiming to integrate AI across customer support, operations, research, and customer relationship management.

According to the companies, the initiative is designed to address challenges faced by telcos, such as customer retention and profitability.

The partnership will combine Circles’ expertise in telecom operations with OpenAI’s models, focusing on applications in text, voice, image, and vision.

Circles partners with telecom operators in 14 countries and counts investors such as Peak XV Partners, Warburg Pincus, Founders Fund, and EDBI.

🔗 Source: Circles

🧠 Food for thought

1️⃣ Telco industry’s declining metrics drive urgency for AI transformation

The Circles-OpenAI partnership addresses fundamental industry challenges that have been building for years.

Research shows telcos worldwide are struggling with declining customer satisfaction, retention, and profitability, which are the problems Circles aims to solve with its AI-native platform1.

A 2019 study found that 25% of customers worry about how telcos manage their data, while younger consumers increasingly view tech companies as legitimate alternatives to traditional carriers2.

These pressures have intensified as telcos face declining revenues and return on investment, contrasting with tech giants that have maintained stronger financial performance2.

The timing of major AI partnerships suggests telcos recognize that incremental improvements won’t suffice. They need fundamental platform transformations to remain competitive.

2️⃣ OpenAI’s telco partnership strategy signals focused industry expansion

The Circles collaboration follows OpenAI’s partnership with Rakuten in February 2024, revealing a deliberate strategy to work with innovative telcos rather than traditional carriers3.