Naver Introduces HyperCLOVA X: Rivaling ChatGPT in AI Frontier

On Thursday, South Korean tech giant Naver introduced its generative artificial intelligence (AI) tool, HyperCLOVA X. This development places Naver in competition for AI technologies, a trend ignited by OpenAI’s ChatGPT chatbot in late 2022. Naver’s strategic timeline involves initiating beta services for CLOVA X on Thursday, with Cue following suit in September, as confirmed by the company.

Naver’s AI solution, HyperCLOVA X, is positioned to cater to various user needs. This comprehensive toolset encompasses AI-driven generative searches for users and tailored services for enterprise clients. 

A key component is the CLOVA X chatbot application, which seeks to enhance web searches, online shopping experiences, and browsing activities. Accompanying this is “Cue,” a generative AI function that establishes connections with search engines, further enriching the user experience.

As a strategic response to the global enthusiasm spurred by OpenAI’s ChatGPT, Naver initiated the development of a Korean Large Language Model (LLM), choosing HyperCLOVA X as its designated business model. 

An advanced iteration of the previously introduced HyperCLOVA in 2021, HyperCLOVA X, has been crafted to excel in capturing the subtleties of the Korean language.

In collaboration with Samsung Electronics, Naver is actively developing more compact and efficient chip solutions to underpin its advancements in AI technology. 

Naver will inaugurate a new data center this November to accommodate the comprehensive HyperCLOVA X services. Naver’s CEO, Choi Soo-yeon, exhibited confidence in embracing the era of generative AI during the model’s launch event in Seoul. He underscored the intense competition among service providers and business partners striving to secure the favor of discerning consumers.

HyperCLOVA X was unveiled at the Team NAVER Conference Dan 2023, hosted at the Grand InterContinental Seoul Parnas. The company expressed its preparedness to explore the potential of generative AI as Naver’s Chief Executive Officer, Choi Soo-yeon as he conveyed his confidence in the model 

“We are ready to face a new transformation called generative AI,”  he said in a statement.

While Naver may be trailing pioneering forces such as Microsoft-backed OpenAI and Google’s Alphabet, the company is steadfastly focused on exploring market niches that remain largely uncharted by major US and Chinese tech giants. 

With a strategic eye on politically sensitive regions like the Middle East and non-English speaking nations such as Japan and Southeast Asia, Naver plans to develop localized AI applications that cater to the specific needs of these distinct locales.

In her keynote address, Choi, Naver’s CEO, said the company is allocating 22 percent of its operating revenue to this crucial cause. This investment has played an instrumental role in advancing the capabilities of HyperCLOVA X and ensuring the accumulation of high-quality data. 

Choi’s presentation also highlighted Naver’s generative AI products and their transformative impact on essential Naver services, encompassing search functionality, commerce activities, and advertising endeavors. 

The rapid deployment of generative AI technology across Naver’s services is anticipated, encompassing tools designed to enhance the operational efficiency of merchants, including CLOVA for Writing, a content creation tool aimed at creators, and CLOVA for AD, a generative AI-driven advertising product designed for advertisers seeking innovative promotional avenues.

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