South Korea has eliminated teams led by Naver Corp. and NCSoft Corp. from its national competition to build the country's first sovereign AI model. The decision leaves just three contenders in the running for the government-backed project. Officials did not provide specific reasons for dropping the two tech heavyweights from the closely-watched race.

This move concentrates the sovereign AI push among remaining bidders, likely large conglomerates and specialized AI labs. Seoul has invested heavily in developing domestic artificial intelligence to reduce reliance on foreign tech giants like OpenAI and Google. Losing Naver, a dominant web portal operator, and NCSoft, a major gaming firm, raises questions about the selection criteria.

The remaining teams now face intense pressure to deliver a functional large language model that can serve public and private sector needs. A final decision on the winner is expected later this year. Observers will watch whether the government prioritizes raw technical capability over established corporate scale in its ultimate choice.