The South Korean government has revised the conditions for a 2 trillion won ($1.4 billion) National Artificial Intelligence (AI) Computing Center project, significantly increasing the private sector’s stake and removing buyback rights so that participating companies can take the lead.

The changes follow repeated failures in previous bids.

The Ministry of Science and ICT announced its plans to promote the National AI Computing Center project on Monday during the launch ceremony of the National AI Strategy Committee.

The center will be operated by establishing a joint company between the government and private firms. The previous structure gave the government majority control as it held more than half the shares (public 51 percent, private 49 percent) along with key decision-making authority.

Moving forward, however, the private sector’s stake will be expanded to more than 70 percent, giving companies the lead role.

The government also eliminated the buyback right clause which allowed it to repurchase investment shares, thus reducing the burden on private participants.

The total project cost, including public-private investment and policy financing loans, exceeds 2 trillion won.

The government aims to secure more than 50,000 advanced graphics processing units (GPUs) by 2030 to build an “AI expressway.”

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