Korean Startup Secures $72M Funding to Develop Tailored Large Language Models

South Korean startup Upstage AI has successfully secured $72 million in Series B funding to advance the development of tailored large language models specifically designed for enterprises. Established in October 2020, Upstage specializes in customizing AI models suited to distinct business domains. Its flagship Solar LLM model has been deployed across various industrial applications, showcasing its robust capabilities.

This investment round was led by Korean telecommunications company KT, with participation from SK Networks and Hana Ventures. Additional contributions came from Mirae Asset Venture Investment and IBK Securities, joining existing investors such as SBVA (formerly SoftBank Ventures Asia), Premier Partners, and Primer Sazze. With this funding, Upstage's total capital raised has surpassed $100 million, positioning the company as the most-funded AI software enterprise in South Korean history.

The newly acquired funds will accelerate Upstage’s AI model development and support its expansion efforts in the United States, including the opening of a new office in San Jose, California. Sung Kim, the CEO and co-founder of Upstage, expressed enthusiasm for the company’s growth: “We’re thrilled to extend our strong success in South Korea to a global audience. This funding will help us build the world’s best generative AI model and deliver an unparalleled 'artificial general intelligence for work' solution to businesses worldwide.”

The Solar LLM offers flexibility in deployment, capable of operating on-premises or via cloud-based APIs such as Amazon SageMaker JumpStart. This adaptability allows companies to collaborate with Upstage in creating their personalized models, reinforcing the claim that the startup can tailor systems for any setting.

Currently, Upstage is focused on developing industry-specific AI agents powered by its Solar LLM, targeting sectors including healthcare, finance, and law. The company's website highlights its commitment to innovation in these areas. Furthermore, Upstage has developed a powerful platform for analyzing enterprise data, known as Document AI. This tool efficiently extracts pertinent information from tables and reports, enabling the seamless export of insights to databases. Noteworthy clients leveraging Document AI include leading corporations like Samsung and Hanwha.

Through strategic advancements and innovative solutions, Upstage AI is poised to reshape the landscape of enterprise-level AI applications, fostering a new era of efficiency and effectiveness across diverse industries.