Recently, 'on-device AI', which enables AI functions to be performed quickly within a device without going through the cloud by utilizing AI semiconductors, has emerged as a hot topic in the global market. With the advent of AI devices, the market need for killer apps has increased significantly, opening up opportunities for startups in the on-device AI market, which is considered a booming market.

The Ministry of SMEs and Startups, together with LG Electronics, Intel, Microsoft, and others, held the On-Device AI Challenge launch ceremony at the Chosun Palace Hotel in Gangnam, Seoul on the 21st to begin discovering promising AI startups that can create on-device AI killer apps.

This challenge was created to support the creation of new businesses and securing global competitiveness through PoC and technical support for promising startups with on-device AI development capabilities. Following the 'Fabless Super Gap Challenge' that had been promoted in the system semiconductor field, it was newly created in the AI field to accelerate global advancement and grow together through collaboration between promising AI startups and global corporations such as LG Electronics.

This event, which included an announcement of global trends in on-device AI, an introduction to detailed challenge programs, an introduction to detailed challenge schedules, and a launch ceremony, was attended by Minister of SMEs and Startups Oh Young-joo, LG Electronics BS Business Division Head Jang Ik-hwan, Intel CEO Kwon Myung-sook, Microsoft CEO Cho Won-woo, and Creative AI Startup Association President Lee Se-young, who came together to secure new business competitiveness through next-generation cutting-edge technologies.

Ten startup companies established within the past 10 years that have software development capabilities utilizing generative/on-device AI and the Intel Open VINO toolkit will receive benefits including: △PoC funding of up to 20 million won, △MS development credit of up to 150,000 dollars, and △preferential treatment for technical support and startup support projects including PoC planning and development.

We are recruiting participating companies from today until April 11th, and the announcement of selected companies is scheduled to take place around the end of April. There are three categories for the contest: △On-Device AI PC category, △On-Device AI Application category, and △Free Proposal category. Startups wishing to take part in the challenge can select one category and apply.

Startups selected through expert evaluation will receive technical support such as technology verification (PoC) from global experts in each field, such as LG Electronics (devices), Intel (chipsets), and Microsoft (SW), and collaboration costs from the Ministry of SMEs and Startups.
Through collaboration, the on-device AI technology of startups with excellent performance will be installed in the next-generation 'LG Notebook' to be released by LG Electronics in the future, thereby securing sales for promising startups.

​LG Electronics expects a significant innovation in the notebook user experience when on-device AI technology is applied. On-device AI is expected to enhance the device usage experience with advantages such as superior security, fast operation speed, and low power consumption compared to cloud AI.

For example, you can use the AI ​​technology installed on your laptop to use real-time translation and interpretation functions without an internet connection, and you can also create pictures, videos, and music. AI is expected to analyze customer usage patterns and improve hardware performance, including CPU performance and battery efficiency.

The Ministry of SMEs and Startups plans to use this challenge as an opportunity to support the growth of promising AI startups and their entry into the global market by forming an 'AI Startup-Large Corporation Symbiotic Council' with the participation of the Creation AI Startup Association and global corporations such as LG Electronics, and to discuss collaboration and mutual growth plans through regular communication.

In his presentation on trends in on-device AI technology, Sung Nak-myeong, a senior researcher at the Electronics and Telecommunications Research Institute, said, “While NPU and hardware technologies are developing and the limits of devices are expanding, there is currently no killer app among on-device AI services that can provide various experiences tailored to the device.” He advised, “It is necessary to develop so that small and medium-sized startups can respond quickly and become competitive in the early stages of technology and market.”

Jang Ik-hwan, Vice President of LG Electronics, said, “In line with the AI PC trend, LG believes that on-device AI technology will be able to create synergy with laptops to provide differentiated customer experiences,” adding, “We hope that the technologies of the startups discovered through this program will be incorporated into the next-generation Gram laptop to discover fun elements and innovate the user experience for customers.”