Microsoft collaborates with Samsung & South Korean tech giants for AI

Microsoft collaborates with Samsung & South Korean tech giants for AI

Microsoft is gearing up to convene a meeting with top executives from leading South Korean tech firms during the MS CEO Summit 2024 set for May 14, 2024. The closed-door discussion will host prominent companies including Samsung, SK Hynix, LG Electronics, SK Telecom, and of course, Microsoft.

Strategic Discussions for AI Development

The summit presents an opportunity for Microsoft to potentially acquire essential hardware crucial for AI advancements and embed its AI services within the products of these companies. Both Bill Gates and CEO Satya Nadella will engage with the top executives of the South Korean companies, including key figures like Kyung Kye-hyun from Samsung Electronics, Kwak Noh-jung of SK Hynix, Cho Joo-wan representing LG Electronics, and Ryu Young-sang from SK Telecom.

Strengthening Partnerships for AI Innovation

The primary focus of the summit will revolve around enhancing partnerships and fostering the growth of artificial intelligence technologies. Notably, discussions with Samsung and SK Hynix may revolve around the provision of high bandwidth memory chips crucial for AI development, given their status as major players in the memory chip market.

Apart from memory chips, negotiations may also encompass high-performance components like solid-state drives and compute express link drives, essential for large language model development. This shift highlights Microsoft's heightened emphasis on bolstering its AI capabilities through strategic hardware acquisitions.

Integrating AI Services into Products

In addition to hardware procurement discussions, Microsoft may explore opportunities to integrate its AI services into the products of partnering companies like Samsung and LG Electronics. This move would not only expand their customer base and product offerings but also strengthen existing collaborations.

Samsung, for instance, is actively developing new AI accelerators, namely the Mach-1 and Mach-2, slated for mass production. Microsoft could potentially leverage these accelerators in the future, despite Samsung's current reliance on Google's Gemini for Galaxy AI support. Furthermore, SK Telecom's recent $100 million investment in AI startup Anthropic underscores a concerted effort to create large language models tailored for telecom companies.

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