Kakao has reached a broad settlement with generative synthetic intelligence (AI) startup Upstage over the sale of AXZ, the operator of the portal web site Daum, and is at present negotiating the valuation. Kakao owns 100% of AXZ and is reportedly planning to switch administration management by way of an fairness swap involving Upstage shares.
AXZ operates Daum’s information, search, buying, café, and mail companies, in addition to the weblog platform Tistory. Upstage is alleged to be notably thinking about securing café and electronic mail information. Though Daum’s income has been on a declining pattern, it recorded gross sales of 332 billion gained (roughly $224.72 million) final 12 months.
An trade insider mentioned, “For Upstage, which is pursuing an preliminary public providing (IPO), buying Daum, which has steady money circulation, would assist improve company worth,” including, “For an organization growing AI giant language fashions (LLMs), securing Daum’s gathered information for AI coaching is a key goal as properly.” Upstage chosen KB Securities and Mirae Asset Securities as lead underwriters earlier this month, concentrating on an IPO by the tip of subsequent 12 months. Its company valuation is estimated at a minimal of two trillion gained.
Based in 2020, Upstage focuses on growing LLMs that allow AI techniques to grasp pure language by way of large-scale information studying. Its flagship mannequin is “Photo voltaic Professional 2,” a frontier-level LLM with 31 billion parameters. Upstage was the one startup chosen–alongside main firms reminiscent of Naver and SK Telecom–for the government-led “Nationwide AI Champion” undertaking, underneath which 5 entities had been chosen.
Kakao has accelerated discussions to promote Daum since spinning it off in Could this 12 months, 11 years after buying the portal by way of a merger and acquisition. The corporate is pushing to divest non-core associates exterior of AI and KakaoTalk. In an October shareholder letter, Kakao CEO Chung Shin-a mentioned the group plans to cut back the variety of associates from 98 to 80.
