OpenAI expands footprint with new Singapore office amid growing AI demand in Asia

[SINGAPORE] OpenAI, the San Francisco-based startup known for bringing generative artificial intelligence (AI) to the forefront, will launch its second Asian location in Singapore later in 2024.

The Singapore office, the company's fourth foreign location, will focus on improving regional collaboration, including work with the national AI program AI Singapore on generative AI models calibrated to comprehend and represent South-east Asian cultures and languages.

The decision to establish a presence in Singapore comes at a time when the city-state is rapidly emerging as a hub for technological innovation in Southeast Asia. With its robust infrastructure, supportive government policies, and a growing pool of tech-savvy talent, Singapore offers an ideal environment for AI companies to thrive and expand their reach across the region. OpenAI's move is expected to not only boost the local AI ecosystem but also potentially attract other major players in the field, further solidifying Singapore's position as a leading tech hub in Asia.

OpenAI's development here reflects the company's long-term aspirations to access Singapore's increasing pool of digital talent and establish a presence in the area, serving as a center for its Asia-Pacific (Apac) partners.

CEO Sam Altman stated in a statement on October 9 that Singapore, with its long history of technological innovation, has emerged as a pioneer in AI, realizing its potential to tackle some of society's most difficult challenges and improve economic development.

"We're excited to partner with the government and the country's thriving AI ecosystem as we expand into the Apac region."

Mr Altman, 39, last visited Singapore in June 2023 as part of a global trip to discuss AI-related issues and answer concerns about the fast roll-out of its flagship product, ChatGPT, which introduced generative AI into the mainstream.

The rapid adoption of ChatGPT and other AI tools in Singapore has been nothing short of remarkable. Businesses across various sectors, from finance to healthcare, have been quick to integrate these technologies into their operations, leading to increased efficiency and innovation. This widespread embrace of AI has created a fertile ground for companies like OpenAI to establish a strong foothold and contribute to the ongoing digital transformation of the region.

OpenAI was created in 2015 and has offices in London, Dublin, and Tokyo. The site of the Singapore office is currently being determined.

OpenAI stated that it will focus on customer service and relationships with governments, corporations, and institutions.

"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.

When contacted, OpenAI acknowledged that it intends to hire between five and ten individuals by 2025 for areas such as sales, security, and solutions engineering, among others, and that it is committed to employing local talent.

Its regional activities will be overseen by Mr Oliver Jay, who will be located here and serve as managing director for International. Mr Jay was formerly the chief revenue officer for software business Asana and an independent board director at Grab.

The company will collaborate more closely with Singapore government partners, such as the Economic Development Board (EDB), to promote AI development here.

The company continued: "Establishing a regional presence brings OpenAI closer to innovative local companies, such as Grab in Singapore and Canva in Australia, which are using OpenAI's advanced AI products to power new tools and features for their customers."

Under a new cooperation with AI Singapore, OpenAI seeks to make sophisticated AI more accessible in Southeast Asia by providing up to US$1 million (S$1.3 million) in resources to create AI models that represent the region's different languages and cultures.

This collaboration between OpenAI and AI Singapore is particularly significant given the linguistic and cultural diversity of Southeast Asia. By developing AI models that can understand and generate content in local languages, OpenAI is not only expanding its market reach but also contributing to the preservation and promotion of the region's rich cultural heritage. This initiative could potentially lead to breakthroughs in areas such as natural language processing and machine translation, benefiting millions of users across the region.

AI Singapore, an institution tasked with fostering technological progress in the area, is building Sea-Lion, a network of ChatGPT-like big language models that are particularly trained for South-east Asian users to ensure that there is an AI that understands the region's culture.

Since OpenAI made ChatGPT public in 2022, its footprint in Singapore has grown rapidly, with its technology included into AI solutions used by both enterprises and the government, such as customer service chatbots and Pair, an internal AI assistant for civil personnel.

AI models from Google Cloud and Meta have also entered the race, and they are among the systems being tested by authorities in a variety of initiatives.

According to EDB managing director Jacqueline Poh, OpenAI's admission demonstrates the strength of Singapore's burgeoning AI ecosystem, as well as investments in AI talent, computing, and commercial demand.

She said that OpenAI's operations here are expected to stimulate new collaborations throughout the sector.

The arrival of OpenAI in Singapore is likely to have a ripple effect on the local tech industry. It could potentially lead to an influx of AI startups, increased venture capital investments, and a surge in demand for AI-related skills. Universities and educational institutions in Singapore may also see this as an opportunity to enhance their AI curriculum and research programs, further strengthening the country's position as a knowledge hub in the field of artificial intelligence.

The start-up's international growth follows news of its intended transition from a non-profit research lab to a more investor-friendly, for-profit firm, in light of mounting operating costs associated with maintaining sophisticated AI systems abroad.

While OpenAI stated that its non-profit arm remains important to the firm, the change has sparked industry worries about how AI issues, such as how data is collected for training and other ethical considerations, would be managed under its new structure.

On November 21, the business will hold its inaugural Developer Day here, with a focus on developers and startups.