Kakao Reviews Merger with AI Development Subsidiary KakaoBrain

Kakao is considering a plan to merge with its artificial intelligence (AI) subsidiary, Kakao Brain.

According to the IT industry on the 8th, Kakao Brain recently held an internal town hall meeting and shared a plan to merge the company with Kakao headquarters' dedicated AI organization. Kakao Brain, a subsidiary established in 2017, researches and develops its own generative AI model called 'KoGPT.'

Kakao is considering the merger to integrate AI organizations scattered across the entire company and develop AI services more swiftly.

Previously, Kakao gathered related teams scattered throughout the company to create an integrated AI organization. They recruited Lee Sang-ho, former SK Telecom Chief Technology Officer (CTO), as Chief AI Officer (CAIO).

If Kakao Brain is merged, it is expected to combine with the headquarters' dedicated AI organization. Kakao is not only developing its own AI models but also actively utilizing external models to embed them into its own services such as KakaoTalk. Internally, Kakao Brain is reported to have completed the development of the next-generation model, KoGPT 2.0.

Since the focus is on AI-based services rather than the scale of AI models, synergy is deemed necessary. On the 4th, at the 'AI Strategy High-Level Council Meeting' hosted by the Ministry of Science and ICT, Jeong Shin-ah, CEO of Kakao, stated, "It is somewhat difficult to specify when the model will be released," adding, "Since many AI models have already been launched, Kakao plans to focus its strategy on services."

A Kakao representative said, "We are reviewing various options to actively respond to the rapidly changing AI era and to maximize AI competitiveness and synergy with Kakao Brain," adding, "Specific details will be finalized through the board of directors' approval process."