Microsoft and South Korea’s telecommunications company KT Corp. have forged a partnership, committing 2.4 trillion won (approximately US$1.8 billion) to advance AI, cloud services, and infrastructure in South Korea over the next five years.

They plan to launch a tailored AI model based on Microsoft’s multilingual GPT-4o in the first half of 2025.

To support this initiative, the telecom firm will launch a subsidiary focused on AI transformation in the first quarter of next year, offering consulting and design services to assist organizations in integrating AI technologies.

This partnership aims to elevate KT’s AI transformation business revenue to 1.4 trillion won by 2029, an increase from the projected 269 billion won in 2025.