Kakao to focus on AI-based services, not infrastructure

Mobile platform giant Kakao said Thursday it will focus on artificial intelligence (AI)-based services rather than infrastructure such as data centers and cloud computing, noting that its goal is to make AI services more accessible and convenient for users in their daily lives. As part of such efforts, the company said it will partner with food delivery platform Coupang Eats and integrate the service into Kakao’s agentic AI, allowing users to receive menu recommendations and complete orders and payments within KakaoTalk, the company’s flagship messaging app. “AI infrastructure businesses require massive upfront investment and continued expenditures on facilities, and the generation changes of advanced chips and AI servers are increasingly fast,” Kakao CEO Chung Shin-a said during the company’s second-quarter earnings call. “Considering the recent competitive expansion of supply, it will be difficult to guarantee a sustainable profitability.” She added: “Rather than entering the AI infrastructure business, we will focus on the layers spanning models and services that consu