Samsung's OpenAI deal on ChatGPT latest in bullish expansion stance

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Samsung's OpenAI deal on ChatGPT latest in bullish expansion stance

Samsung Electronics Executive Chair Lee Jae-yong, left, and OpenAI CEO Sam Altman pose for a commemorative photo after signing a letter of intent with four Samsung affiliates to collaborate on OpenAI’s $500 billion Stargate project. [SAMSUNG ELECTRONICS]

Samsung Electronics Executive Chair Lee Jae-yong, left, and OpenAI CEO Sam Altman pose for a commemorative photo after signing a letter of intent with four Samsung affiliates to collaborate on OpenAI’s $500 billion Stargate project. [SAMSUNG ELECTRONICS]

 
Freed from years of legal distractions, Samsung is signaling a bolder stance on collaboration and mergers and acquisitions (M&A) under Executive Chairman Lee Jae-yong, with a major service release with OpenAI and the 2.6 trillion won ($1.7 billion) acquisition of a vehicle electronics business.
 
Samsung SDS announced on Tuesday that it had signed a reseller partnership agreement with OpenAI, becoming the first Korean company to offer ChatGPT Enterprise — a generative AI service tailored for businesses — to corporate clients in Korea.
 

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The announcement marks the first tangible business outcome following the October meeting between Lee and Sam Altman, CEO of OpenAI.
 
ChatGPT Enterprise is designed with enterprise-grade security and privacy protections. It offers features suited for corporate use, including faster processing speeds than the standard version, an expanded context window for handling longer prompts, advanced data analysis tools and extensive customization options.
 
The service allows companies to prevent internal data from being used for external model training, making it particularly well-suited for industries that prioritize data security and regulatory compliance.
 
Samsung SDS will provide consulting, technical support and security services to companies adopting ChatGPT Enterprise. The company plans to oversee the entire adoption process — from initial planning to deployment and operations — to help businesses integrate generative AI with their internal data and systems.
 
Samsung Electronics' headquarters in Seocho District, southern Seoul is seen on Dec. 16. [YONHAP]

Samsung Electronics' headquarters in Seocho District, southern Seoul is seen on Dec. 16. [YONHAP]

 
The goal is to support AI transformations across a range of industries, including manufacturing, finance and services.
 
“We will support the AI transformation of corporate clients across diverse industries by providing ChatGPT Enterprise,” said Lee Ho-joon, the executive vice president and head of Samsung SDS’s Cloud Service Business Division.
 
Also on Tuesday, Samsung completed a major M&A deal in the automotive electronics space. Samsung Electronics announced that its subsidiary Harman had signed an agreement to acquire the advanced driver assistance system (ADAS) business of German company ZF Friedrichshafen for 1.5 billion euros ($1.77 billion).
 
Matthias Miedreich, CEO of ZF Friedrichshafen, left, Young Sohn, chairman of the board of Harman, center, and Christian Sobottka, CEO of Harman, shake hands after signing an M&A for Samsung Electronics to acquire the advanced driver-assistance system (ADAS) business of ZF through its subsidiary Harman [SAMSUNG ELECTRONICS]

Matthias Miedreich, CEO of ZF Friedrichshafen, left, Young Sohn, chairman of the board of Harman, center, and Christian Sobottka, CEO of Harman, shake hands after signing an M&A for Samsung Electronics to acquire the advanced driver-assistance system (ADAS) business of ZF through its subsidiary Harman [SAMSUNG ELECTRONICS]

 
Founded in 1915, ZF is a German automotive parts maker. The ADAS business being acquired by Harman has more than 25 years of experience and currently holds the top position in the global market for ADAS smart cameras. The division has supplied products to major global automakers, including BMW and the Volkswagen Group.
 
This acquisition adds core driver assistance technologies to Harman’s existing strengths in digital cockpits and infotainment systems.
 
Through the deal, Harman will gain front-facing vehicle camera and ADAS controller technologies. Combined with its digital cockpit portfolio, the company aims to strengthen its position in the centralized controller market and better respond to the shift toward software-defined vehicles. The acquisition is expected to be completed by 2026.
 
Samsung Electronics has achieved success in its automotive electronics business since acquiring Harman, whose revenue doubled from 7.1 trillion won in 2017 to 14.3 trillion won in 2024. Over the same period, operating profit rose sharply from 100 billion won to 1.3 trillion won.
 
Harman's logo [HARMAN]

Harman's logo [HARMAN]

 
With AI and automotive electronics as its two main pillars, Samsung plans to continue its global partnerships and investments to build a solid foundation for future growth.
 
The company has executed three other major deals this year alone: a 1.5 billion euro acquisition of German climate control company FläktGroup, the $350 million acquisition of the audio division of U.S.-based Masimo and the acquisition of U.S. health care firm Zelis, estimated to be worth several hundred billion won.
 
Under Lee’s leadership, Samsung is pursuing M&As in future-oriented sectors such as AI, automotive electronics, health care and robotics.
 
Since last year, the conglomerate has acquired a number of smaller but technologically competitive firms to strengthen its business portfolio. This year, it has expanded its M&A scope with larger deals in automotive electronics, climate control and digital health — signaling a broader, more aggressive approach.
 
Industry sources consider this a strategic move by Samsung to simultaneously accumulate core technologies and expand its ecosystem.


This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK YOUNG-WOO [[email protected]]
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