TL;DR:
- Naver and Kakao, South Korea’s tech giants, are delaying the release of their AI models to improve performance.
- They aim to combine their AI models with existing services for market dominance.
- Market expectations have changed due to new AI services from global tech companies.
- Naver is undergoing a transformation, planning to release Hyper Clova X and an upgraded search chatbot.
- Kakao will wait for satisfactory performance before releasing its hyperscale AI, KoGPT 2.0.
- Kakao also plans to release an interactive chatbot and an AI-based total service.
- Both companies prioritize developing AI models that provide personal digital assistants.
- Naver focuses on business-to-business customer satisfaction with its AI models.
- Kakao plans to showcase a roadmap for its generative AI business later this year.
Main AI News:
Naver Corp. and Kakao Corp., the two tech powerhouses of South Korea, have opted to delay the launch of their latest generative artificial intelligence (AI) models in order to fine-tune their performance. This decision stems from their recognition of the impressive Korean-language capabilities demonstrated by global giants such as Google LLC and Microsoft Corp.
Rather than rushing to release their AI models, these local tech giants are focused on further enhancing their offerings. They believe that the combination of their generative AI models with their existing web portal and messaging app services will secure dominant positions in the market, thanks to their strong user base and established dominance.
Industry sources revealed that both Naver and Kakao had postponed the release of their upgraded generative AI models and vertical AI services. Initially, the companies had anticipated launching their AI models in the first half of this year to compete with global AI services. However, market expectations have been revised following the introduction of new AI services by global tech titans.
According to an unnamed industry insider, both Naver and Kakao aim to develop personal digital agents capable of providing AI assistance for scheduling and asset management. The delays in the release are strategic decisions to ensure the delivery of better-functioning AI models and services that align with their long-term vision rather than a hasty release to meet initial deadlines.
Naver appears to be at the forefront of this trend, undergoing a comprehensive transformation of its services and adapting to the paradigm shift of the new era. The company, once known as the nation’s leading web portal, is now working on changes to its platform user interfaces (UI) and user experiences (UX). In July or August, Naver plans to launch Hyper Clova X, an upgraded version of its large language model (LLM) AI, Hyper Clova. The release of the company’s enhanced search chatbot, based on Hyper Clova X, has also been delayed to the third quarter. Naver intends to conduct limited internal and beta tests to refine the chatbot service, currently referred to as Search GPT.
An industry insider familiar with Naver’s situation stated that the company has a clear objective of developing an LLM that satisfies its business-to-business customers. Naver is dedicating extensive efforts to enhance the sophistication of its LLM, treating it as a critical operation to meet its internal goals. After revamping the desktop version of its web portal, the company plans to overhaul the mobile version, including the mobile homepage, integrated search functions, UI, and UX.
In contrast, Kakao’s approach is more flexible. The company will wait until its hyperscale AI demonstrates satisfactory performance before proceeding with any releases without specifying a fixed timeframe. Kakao Brain Corp., the AI subsidiary of Kakao, will unveil KoGPT 2.0, an upgraded version of its LLM called KoGPT, in the third quarter of this year, postponing the initial plan of a first-half release. Additionally, an interactive AI chatbot based on KoGPT, currently named KoChat GPT, is scheduled for release within the year. Kakao’s ambitious plans also include an AI-based total service that enables various functionalities, including reservations, payments, and commerce, all within the Kakao environment.
An official from Kakao mentioned that they are currently deliberating whether to release KoGPT 2.0 and KoChat GPT simultaneously or introduce the LLM first and subsequently launch the service. The company plans to present a roadmap for its generative AI business later this year. The release of the upgraded version of Kalo, Kakao Brain’s AI image generator, has also been pushed back to early next month from its initial schedule for this month.
Conlcusion:
The decision of Naver and Kakao, South Korea’s tech giants, to delay the release of their AI models signifies their commitment to enhancing performance and addressing evolving market expectations. By leveraging their strong user base and established dominance in web portals and messaging app services, these companies aim to secure market-dominant positions by combining their generative AI models with their existing offerings.
This strategic approach emphasizes the importance of delivering high-functioning AI models and services that cater to the needs of their business and individual customers. As the market evolves, competition in the AI sector is intensifying, and Naver and Kakao’s focus on refining their AI capabilities indicates their determination to stay ahead and provide innovative solutions in an increasingly competitive landscape.
