Coupang has its head in the AI clouds with push to enter market

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Coupang has its head in the AI clouds with push to enter market

Published: 18 Jul. 2025, 05:00

Audio report: written by reporters, read by AI

A Coupang fulfillment center in Seoul on Feb. 28, 2024 [YONHAP]

Coupang, the dominant player in Korea’s e-commerce industry known for its signature Rocket Delivery service, is now making a full-fledged push into the AI cloud market.

The move is reminiscent of Amazon’s transformation from a mere e-commerce company into a global tech behemoth. Backed by its logistics and retail data infrastructure, Coupang aims to evolve into a comprehensive IT platform provider — though it still faces key challenges in differentiation and profitability.

A Coupang delivery truck [COUPANG]

AI talent recruitment ramps up

Coupang has recently accelerated its recruitment of AI, cloud and big data experts in the United States, India and other global markets. It is also hiring engineers in Korea to manage its AI cloud infrastructure and systems. Job postings show a preference for applicants with experience in Amazon Web Services (AWS)-based cloud computing.

The company has also brought in senior-level personnel with over two decades of experience at technology companies like Cerebras and HP, signaling a pivot from a software-heavy talent pool toward infrastructure expertise.

Industry analysts see this as Coupang’s formal entry into the AI cloud business. On July 2, the company rebranded its AI-based cloud service as Coupang Intelligent Cloud and unveiled a new logo. The move aims to expand its AI infrastructure — previously used internally and offered to external researchers and startups — into an independent business.

Workers are seen outside Amazon's YVR2 fulfillment center in British Columbia, Canada, on July 11. [AP/YONHAP]

Echoes of AWS

Coupang’s strategy of expanding from logistics and retail into content and cloud services closely mirrors that of Amazon. Already modeled after Amazon’s fulfillment services — the collective process of warehousing, picking, packing and shipping products for companies that sell online — Coupang now appears poised to turn its cloud business into a new revenue stream, much like AWS, which accounts for over half of Amazon’s total operating profit.

Coupang emphasizes its strategic edge of large-scale data centers in the Seoul metropolitan area.

“We have secured high-capacity power and physical security systems to ensure stable operations,” a company representative said. “The proximity to end users minimizes service delays.”

The company also highlighted its internal use of AI computing infrastructure across services like e-commerce as well as its streaming platform, Coupang Play, and food delivery app, Coupang Eats, as a key strength.

Coupang’s cloud playbook

Rather than targeting business-to-consumer markets, Coupang plans to continue focusing on domestic research institutions and startups in the near term. Last month, it applied to join a government project to support the acquisition and operation of GPUs — a 1.5 trillion won ($1.08 billion) initiative that includes other major cloud providers like Naver and Kakao. If selected, Coupang could secure up to 10,000 GPUs to support domestic AI research and development.

“Our strategy is to focus on specialized AI cloud services rather than general-purpose offerings,” a Coupang spokesperson said. “This structure is optimized for specific markets and could help us quickly secure an early customer base.”

A data center owned by Amazon Web Services, front right, is under construction next to the Susquehanna nuclear power plant in Berwick, Pennsylvania, on Jan. 14, 2024. [AP/YONHAP]

A market disrupter?

Experts say Coupang could serve as a disruptive force in Korea’s cloud industry.

“Unlike existing cloud service providers, Coupang has a unique edge in commerce-driven AI data capabilities, giving it the potential to rapidly penetrate the private sector,” said Moon Hyung-nam, a professor at Sookmyung Women’s University’s College of Global Convergence.

He also pointed to Coupang’s partnership with the Korea Startup Forum, offering cloud discounts and jointly developing AI solutions for startups — a strategy akin to AWS’s early focus on AI startups.

“This could improve accessibility and cost-efficiency for domestic AI startups, which is a positive development,” he added.

However, observers note that it may take a long time for the business to turn a profit, given the substantial upfront investment required.

“To succeed like Amazon, Coupang will need to invest heavily in building additional data centers,” said Shin Min-soo, a business professor at Hanyang University. “Gaining a competitive edge over early entrants will also require pricing advantages, meaning profitability may take time.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY NOH YU-RIM [[email protected]]