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KT Launches Enterprise AI Platform to Challenge Cloud Giants

Business professionals using AI platform.
Business professionals using AI platform.

KT unveiled an enterprise AI platform on Tuesday that lets businesses access models from multiple providers through a single service, positioning the Korean telecom against global cloud operators like Amazon and Microsoft.

The service, called Token Factory, launches Friday with 73 models and will grow to over 500 by November through a partnership with US-based AI marketplace OpenRouter. The concept emerged from client demands KT encountered during corporate projects.

Platform Features and Cost Savings

Through Token Factory, customers can select models, monitor usage and settle charges in Korean won. An automated system routes simpler requests to cheaper models and complex tasks to higher-performance alternatives.

KT estimates the technology could reduce AI processing costs by up to 25 percent based on internal tests, though comparison criteria were not disclosed. Removing unnecessary text from prompts accounts for roughly 20 percent of savings, while choosing the least expensive capable model contributes another 5 percent, according to Kim Jun-seok of KT’s Agentic AI Lab.

Businesses can pay after using the service and combine AI charges with existing telecom bills. Larger customers receive volume discounts and dedicated network options.

Partnership and Revenue Strategy

OpenRouter provides access to models from developers including OpenAI, Anthropic and Google. The partnership may also let KT sell AI services hosted in Korea to overseas customers.

“Working with KT extends that choice to Korean enterprises, with the option of using computing infrastructure located in Korea.”

KT’s revenue strategy extends beyond distributing third-party models. It plans to sell AI computing capacity from its own data centers and integrate Token Factory into existing corporate network, cloud and AI contracts. While AI marketplaces typically take 5 percent commission, Lee Jin-hyoung of KT’s AX business unit said that won’t be the main business model.

The company expects its seven locally hosted models to cost less than comparable services, though detailed pricing hasn’t been released. Domestic processing could appeal to banks and public institutions with strict data requirements, KT said, though only seven of the 73 launch models will run in Korean data centers with most processing overseas.

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