Chung Shin-a, the chief executive of Kakao, said on the 12th that the company signed a strategic partnership with Google. It is a comprehensive collaboration that includes optimizing Kakao's On-device AI service "Kanana in KakaoTalk" to run best on devices with Google's OS, and enabling KakaoTalk services to be embedded in next-generation form factors such as AI glasses. Kakao appears set to pursue a two-track strategy: partnering with Google on the device-experience side, and with OpenAI on the LLM (large language model) and AI B2C (business-to-consumer) service side.
At an earnings conference call that day, Chung said, "We agreed to begin full-fledged global collaboration starting this year to showcase next-generation AI experiences," adding, "We are announcing for the first time here a strategic partnership between Kakao and Google." Karen Teo, vice president of platform and device partnerships for Google Asia Pacific, said in materials released that day, "We are pleased to further solidify our partnership with Kakao," adding, "This collaboration will combine Google's latest AI technology with Kakao's proven ability to innovate for Korean consumers."
Based on this partnership, the two companies agreed to work closely to develop a user experience for AI glasses using Android Extended Reality (XR) and an Android mobile experience infused with the latest AI technology.
First, Kakao will work with Google on optimization so that its On-device AI service runs smoothly on Android mobile devices. It will start with "Kanana in KakaoTalk." "Kanana in KakaoTalk" uses Kakao's in-house lightweight AI model and is characterized by detecting when users need help and initiating conversation first. It understands the user's conversational context on the device and proposes schedule briefings, information guidance, and place and product recommendations. A beta service has been underway since Oct. last year, and a full launch, including the Android version, is planned in the first quarter.
Chung said, "We will build synergistic collaboration by focusing on areas only Google can do while maximizing Kakao's strengths," adding, "We can find various possibilities in On-device AI services that can maximize the value of data asset within the Kakao ecosystem."
The possibility of collaboration on new form factors was also raised. Kakao will focus its capabilities on building interfaces optimized for next-generation form factors such as AI glasses based on Android XR. In particular, it plans to offer a user experience implemented through hands-free interactions and natural language in scenarios closely tied to daily life, such as messaging and calls. Chung said, "We will form hypotheses and run phased experiments on how the user experience will change when Kakao services are combined across various AI form-factor environments."
Opportunities for collaboration in other areas also remain open. The companies will also cooperate on AI infrastructure. Kakao is in talks with Google Cloud on cloud operations based on TPUs (tensor processing units). Chung said, "The financial burden for AI infrastructure is gradually increasing, so we are considering optimally deploying various chips to suit the characteristics of our models and services," adding, "As a corporations in Korea with the capability to effectively use TPUs, we are discussing TPU operations of meaningful scale with Google Cloud." With the spread of Generative AI driving up GPU (graphics processing unit)-centric infrastructure expense, the strategy is to diversify the chip lineup and improve capital efficiency.
Kakao has been collaborating with OpenAI since Feb. last year.
Chung said the number of users of "ChatGPT for Kakao," a chat service based on OpenAI, reached 8 million in just over three months after its launch. Chung said, "Collaboration with OpenAI continues on the B2C AI service side centered on ChatGPT, which has the largest number of B2C users globally," adding, "While we focused on stabilizing the service after last year's launch of ChatGPT for Kakao, starting this year we will further strengthen the linkage between KakaoTalk conversations and ChatGPT and sequentially roll out various AI features based on ChatGPT within Talk, further expanding our collaboration with OpenAI."
Chung added, "Kakao plans to build partnerships in non-overlapping areas by working with Google on the device-experience side and with OpenAI on the AI B2C service side," adding, "Rather than doing everything ourselves, we will collaborate with the leading global partners in each field to efficiently cover all AI layers and optimize direct investment."