KT and Microsoft to collaborate on AI transformation, launch 300-person unit - South Korean media

Telecommunications giant KT has announced that it will be establishing a new specialized organization for its AI Transformation (AX) business, the "AX Delivery Center," in collaboration with Microsoft (MS).
KT and MS formed a partnership in September 2024. They decided to jointly develop and operate AI and cloud services for Korea. The AX Delivery Center will be the core organization to promote the business.
The center will be launched in mid-March and is expected to have 300 employees by the end of the year, of which 200 will be KT employees and 100 will be Microsoft employees.
Korean AI not only processes Korean language, but also incorporates Korean society, history, and national outlook, and is able to express emotions, methods, and
Comprehensive and deep understanding of knowledge. Development of AI models that reflect Korea's unique characteristics, including KT's self-developed AI model "Mideum" and AI models developed through collaboration with MS.
In addition, they will also jointly develop AX solutions with startups. For this reason, from 2025, KT and MS will set up the "AX Strategy Fund" in which they will invest 50:50.
Structure: KT will invest 13 billion won (approximately 1.337 billion yen) in cash, and Microsoft will donate the same amount in kind, including graphics processing units (GPUs).