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Kakao Corporation and Kakao Brain Corp. are merging to form a unit that will focus on artificial intelligence business. The former will take in its AI subsidiary as part of a strategy to advance in this sector.
Pulse News noted that the merging of Kakao and Kakao Brain comes seven years after the former set up the latter as its AI unit in 2017. At that time, Kakao Brain was established so the company could carry out research and create its own generative AI (GenAI) model.
The Merger and Restructuring
The news of the companies' consolidation was first reported on Sunday, April 7. Kakao Brain reportedly held an internal town hall meeting where it revealed its business direction. The company shared that it will focus more on its unification to form an exclusive AI group at the Kakao headquarters.
Kakao Brain said it is planning to finalize its deal with Kakao within the first half of this year. Accordingly, the merger will also involve company-wide organizational restructuring since they will soon operate as one group. Moreover, the reorganization aims to boost AI services by swiftly launching AI technologies and other related services to optimize costs while initiating its own strategy for success in the AI business.
“Kakao and Kakao Brain are actively considering various measures to respond to the rapidly changing AI era and maximize AI competitiveness and synergy,” Kakao stated on its unification with Kakao Brain. “Specific details will be finalized through a board resolution.”
Kakao Brain’s Strategic Decision for Consolidation
An official of the Korean research and development company that specializes in AI-based technologies said the company hopes the merger with Kakao will enhance its AI competitiveness and improve its performance in line with the fast-changing artificial intelligence business space.
The official added that no specific plan is in place for the merger yet. The companies will publish fixed details once the deal is formally finalized after the board approves the agreement, The Chosun Daily reported.
Photo by: Steve Johnson/Unsplash
