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OpenAI, the parent company of popular GenAI chatbot ChatGPT, has announced it will open an office in Singapore later this year.
The company's fourth international office after Japan, and their second in Asia, will serve as a regional hub to foster collaboration, and strengthen relationships with local and regional governments, businesses and institutions. This will include working with the city-state's national AI programme, AI Singapore, on generative AI models that are tuned to understand and reflect cultures and languages in Southeast Asia.
In a statement at Tech Week in Singapore, OpenAI'S CEO Sam Altman said: “Singapore, with its rich history of technology leadership, has emerged as a leader in AI, recognising its potential to solve some of society’s hardest problems and advance economic prosperity.
“We’re excited to partner with the government and the country’s thriving AI ecosystem as we expand into the APAC region.”
Founded in 2015, the San Francisco-based AI company shot to global prominence in November 2022 when they launched their text-generating AI chatbot, ChatGPT, making generative AI widely available to the general public.
Since then, OpenAI has opened international offices in London, Dublin and Tokyo. The Singapore office will be its fourth international branch when it opens later this year.
Singapore was one of the first countries to develop an AI strategy, and last December, it unveiled the National AI Strategy 2.0. This updated framework aims to broaden the implementation of AI across various sectors, reinforcing Singapore's commitment to harnessing AI for societal and economic benefits.
Campaign reached out to marketers in the region to gauge their view on the office opening.
"This move is strategically significant, not only because it allows OpenAI to expand its reach into one of the largest and most diverse markets, but also because it provides an opportunity to enhance their product by training it on a wider range of languages and regional knowledge," says Manolis Perrakis, innovation director at We Are Social Singapore. "From our research, we've found that while the leading LLM models possess multilingual capabilities, they often lack proficiency in many South Asian languages. After all, an AI model is only as good as the training data it receives."
And Xiaofeng Wang, principal analyst at Forrester said: "OpenAI’s decision to establish an office in Singapore will enable the localisation of its AI technologies to adapt to diverse languages and cultural contexts. Marketers and advertisers in the region would benefit from the availability of more generative AI-powered marketing and advertising tools that are tailored to the local context."
An executive that works for Google, previously told CNBC that "Singapore has 'very high' potential as a global AI hub—thanks in part to an environment that fosters innovation."
By establishing a presence in Singapore, it marks the beginning of OpenAI's long-term strategy to leverage the country's expanding tech talent pool and strengthen its foothold in the region.
The company has confirmed plans to recruit between five and ten employees by 2025 for various positions in its Singapore office, including sales, security, and solutions engineering, emphasising its commitment to hiring local talent.
Leon Cooper, partner at a boutique business consultancy advising C-suite clients based in Australia, said: "By establishing a regional presence, OpenAl aims to tap into Singapore's growing pool of tech talent. This move is likely to accelerate the adoption of generative Al tools in marketing, enabling more personalised and data-driven campaigns. Marketing leaders can respond by investing in Al training for their teams, exploring partnerships with Al firms, and leveraging OpenAl's advanced tools to enhance customer engagement and streamline operations."
Singapore is currently the Asia headquarters for numerous big US online companies, including Alphabet's Google and Meta Platforms. These two tech giants are also working together to create undersea internet cables that will enable speedier connectivity between the city-state and the US west coast.
"These plans reflect Singapore's leadership position in technology and AI, as well as the growing demand for advanced AI tools across Asia," said OpenAI. Singaporeans are among the highest-per-capita users of ChatGPT worldwide, with the number of weekly active users doubling since the beginning of 2024.
Earlier last year, OpenAI established its first Asia headquarters in Tokyo, with a tailored GPT-4 model catering to Japanese-language consumers. The company is ramping up expansion after recently acquiring billions of dollars in investment and credit, with a valuation of US$157 billion in a round that also included SoftBank Group, a long-time AI investor.
The company is also aggressively pursuing partnerships with various sectors. This week, global media company Hearst announced a new content partnership with OpenAI, which will integrate Hearst's newspaper and domestic magazine content into OpenAI's products. As part of the partnership, OpenAI will include some of Hearst's most recognised magazine titles, such as Esquire, Cosmopolitan, ELLE, Runner's World, Women's Health, and others, into its advanced AI products. The agreement involves more than 20 magazine brands and over 40 newspapers globally, providing ChatGPT's 200 million weekly users with a range of lifestyle material.
Meanwhile, Uber Technologies will launch an AI assistant powered by OpenAI technology to aid drivers in transitioning to electric vehicles as part of its efforts to reduce emissions. The AI assistant, which is based on OpenAI's GPT-4o, was showcased at Uber's Go-Get Zero event in London on Tuesday. The chatbot will debut in the US early next year, with plans to expand to other markets later on.
Rahat Kapur contributed to this story.
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