The Ministry of SMEs and Startups (MSS) held the ‘AI Super Gap Challenge Kick-off Day’ on February 26 to foster the commercialization of AI technology through strategic partnerships with global corporations. The event, supported by companies like LG Electronics and Qualcomm, aims to drive AI innovation and create robust sales channels for startups.

DeepSeek, a Chinese company, recently introduced a low-cost, high-performance LLM model, escalating the global competition for AI technology. This surge in AI adoption across various industries has emphasized the need for specialized AI technologies tailored to specific devices and sectors.

The initiative by MSS targets two main areas: ‘On-device AI’ and ‘Vertical AI.’ On-device AI focuses on leveraging semiconductors within devices to process data quickly without relying on central servers. Vertical AI, meanwhile, provides customized solutions specific to industries such as manufacturing and biotechnology, essential for addressing precise needs within those fields.

MSS’s ‘Super Gap AI Startup Level-Up Strategy,’ unveiled in July 2024, seeks to cultivate AI startups by linking their innovative capabilities with actual market demands, promoting their growth into global unicorns.

This year’s AI Super Gap Challenge, expanded in collaboration with LG Electronics and newly joined Qualcomm, will include programs in ‘On-Device AI’ and ‘Vertical AI,’ catering to various sectors from smart TVs to autonomous driving. These programs are designed to integrate startup technologies into products of global corporations, thereby enhancing their market readiness and potential for commercial success.

The ‘On-Device AI Program’ has expanded from last year’s focus on laptops to include smart TVs and home appliances. A total of 15 startups will receive up to KRW 100 million for AI development, benefiting from business support and technical assistance from LG Electronics and Intel.

The new ‘Vertical AI Program’ will enable collaboration in four key areas—autonomous driving, drones, and more—with Qualcomm providing support from technical expertise to market access. This initiative is designed to prepare startups for international expansion and integration into global supply chains.

Applications for participation are open via the K-Startup portal until March 18. The event included speeches from industry leaders and government officials, emphasizing the collaborative effort to drive AI innovation and support startups in becoming competitive players in the global market.

Building on the success of this initiative, MSS plans to introduce more sector-specific challenges, like the ‘Fabless Challenge’ and the ‘Climate Tech Challenge,’ aimed at harnessing the potential of deep-tech sectors through collaborative efforts. These programs are intended to catalyze the growth of AI technologies and ensure their rapid integration into relevant markets and industries.