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flag South Korea dropped Naver Cloud from its AI project for using Chinese tech, stressing homegrown model development.

flag South Korea’s government has selected LG AI Research, Upstage, and SK Telecom to advance in its national AI foundation model project, eliminating Naver Cloud and NC AI. flag Naver Cloud was dropped for using a Chinese-developed model’s encoder and weights, violating the requirement for technical independence. flag The government emphasized that models must be trained from scratch using self-collected data, even when leveraging open-source tools. flag Though Naver chose not to reapply despite a second-chance opportunity, the decision has raised concerns about transparency and fairness in state-led tech initiatives.

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