- Kakao Corp. is integrating its AI subsidiary, Kakao Brain Corp., to bolster its AI business.
- The merger aims to optimize AI services and streamline costs by incorporating AI technologies swiftly.
- Lee Sang-ho, former CTO of SK Telecom Co., was appointed as Chief AI Officer to lead the new AI organization.
- Kakao Brain’s project KoGPT 2.0 rollout has faced multiple delays, prompting industry speculation.
- Kakao’s strategic pivot focuses on enhancing core services like KakaoTalk and revenue-generating AI services.
- This aligns with Kakao’s recent initiative to consolidate AI-related teams and establish a unified AI entity.
- CEO Chung Shin-a emphasizes a shift towards service-centric AI strategies over a mere focus on language model scale.
Main AI News:
Kakao Corp. is set to integrate its AI subsidiary, Kakao Brain Corp., in a strategic move aimed at bolstering its AI business endeavors. Established in 2017, Kakao Brain has been dedicated to pioneering its generative AI model. According to insights obtained by Maeil Business Newspaper, Kakao Brain recently outlined its strategic vision during an internal town hall, emphasizing its consolidation with a new AI entity housed within Kakao’s headquarters. This integration initiative is slated for completion by the first half of 2024.
The restructuring aims to fortify AI services by swiftly incorporating AI technologies and associated services to streamline costs and carve out a unique path for AI success. Notably, Kakao enlisted the expertise of Lee Sang-ho, former Chief Technology Officer (CTO) of SK Telecom Co., appointing him as the Chief AI Officer (CAIO) to steer the new AI organization.
“Kakao and Kakao Brain are actively exploring various strategies to navigate the rapidly evolving AI landscape and maximize synergies in AI competitiveness,” stated Kakao. “Concrete plans will be solidified following board deliberations.”
Industry watchers have been keenly observing Kakao’s AI trajectory, particularly anticipating the rollout of KoGPT 2.0, a project spearheaded by Kakao Brain. Originally slated for release in 2023, the launch has faced multiple postponements, prompting speculation within the industry.
“The proliferation of language models domestically and internationally has raised questions about the strategic relevance of launching proprietary models,” remarked an industry insider. “Kakao’s strategic pivot seems geared towards enhancing core services like KakaoTalk and bolstering revenue-generating AI services.”
This strategic realignment aligns with Kakao’s recent pledge to streamline its AI-related teams and establish a unified AI entity aimed at spearheading technological advancements and service innovation. CEO Chung Shin-a reiterated this stance during a recent AI Strategy High-Level Consultative Council meeting, emphasizing the company’s commitment to service-centric AI strategies over a mere focus on language model scale.
Commenting on the timeline for KoGPT 2.0’s release, Chung acknowledged the complexities involved, stating, “It’s challenging to pinpoint the exact release date given the abundance of existing AI models.” She emphasized the company’s strategic shift towards service-centric approaches amidst the evolving AI landscape.
Conclusion:
Kakao’s decision to merge Kakao Brain with its operations signifies a strategic move to consolidate its AI capabilities and remain competitive in the evolving AI market. By prioritizing service-centric AI strategies and leveraging expertise from industry veterans like Lee Sang-ho, Kakao aims to position itself for sustainable growth and innovation in the AI sector. This integration underscores Kakao’s commitment to adapting to market dynamics and enhancing its offerings to meet evolving consumer demands in the AI space.
