OpenAI picks Singapore for first Applied AI Lab outside US in S$300 million push to tap ‘incredible talent here’

ChatGPT creator OpenAI will open its first Applied AI Lab outside the US in Singapore and hire more than 200 specialised artificial intelligence professionals over the next few years as part of a S$300 million investment in the Republic.

The move comes after the San Francisco-based technology company signed a memorandum of understanding (MOU) with Singapore’s Ministry of Digital Development and Information (MDDI) on Wednesday (20 May), during the ATxSummit held at Capella Singapore.

Chng Kai Fong, permanent secretary (digital development and information) at MDDI, and Denise Dresser, chief revenue officer at OpenAI, signed the agreement. It was witnessed by Minister for Digital Development and Information Josephine Teo.

Dubbed “OpenAI for Singapore”, the deal marks the first MOU between the Singapore government and OpenAI.

It has three main aims – advancing applied AI innovation, building AI talent, and making AI more accessible to citizens, enterprises, and the public sector.

To that end, the agreement centres on three pillars of collaboration – establishing the Applied AI Lab, working with Singapore’s education sector on capability-building programmes, and expanding access to AI tools and expertise for Singaporeans and businesses.

The Applied AI Lab will support projects aligned with Singapore’s national priorities, particularly in public services, finance, healthcare, and digital infrastructure.

It will also focus on deploying AI systems and identifying practical use cases for OpenAI’s models that can be scaled across the wider economy. This includes working “side by side” with the Singapore government, Dresser said in a pre-announcement interview with The Business Times.

Most of the more than 200 planned hires are expected to be forward-deployed engineers and other technical specialists. Forward-deployed engineers work directly with customers and organisations to customise and implement AI systems for specific business or operational needs.

“This is just a great opportunity to be here – we’re really excited about the potential – and certainly the opportunity to scale it beyond (Singapore).”

She added that Singapore’s “forward-leaning environment” and strong appetite for AI products made it an attractive place to invest in, while also positioning Singapore as a potential “beacon and a model” for future regional partnerships.

OpenAI first opened its Singapore office in end-2024, with Singapore serving as its Asia-Pacific hub. On a per capita basis, Singapore consistently ranks among OpenAI’s leading markets for adoption of ChatGPT and Codex, Dresser noted.

ChatGPT, the company’s flagship product, has more than 900 million weekly active users globally. Codex, launched in May 2025, is the company’s agentic AI platform.

Presently, OpenAI’s consumer business contributes about 60 per cent of overall revenue, while enterprise accounts for the remaining 40 per cent. Dresser said the enterprise segment is expected to reach 50 per cent of revenue by the end of the year (2026), driven partly by rising adoption of Codex.

Part of that growth has come from the deployment of forward-deployed engineers, who work closely with enterprises to tailor OpenAI’s models to firms’ individual operational needs.

As part of Wednesday’s agreement, OpenAI will also launch a forward deployed engineer programme in Singapore to train mid-career software engineers in building real-world AI systems.

Earlier on Wednesday (20 May), Teo announced that the government would “help 10,000 enterprises use AI meaningfully” as part of 10 refreshed priorities under Singapore’s updated National AI Strategy aimed at harnessing AI for the public good.

The announcements come a week after the release of the final recommendations from the Economic Strategy Review committees, which included proposals to accelerate economy-wide AI adoption and strengthen Singapore’s position as a location of choice for high-impact AI solutions.

Source: The Business Times © SPH Media Limited. Permission required for reproduction.