Kakao forms strategic partnership with Google to advance on-device AI and XR integration

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Korea's mobile platform giant Kakao has announced a strategic partnership with Google to collaborate on on-device AI services and embed its technologies into Google's extended reality devices including AI glasses. The partnership will focus on optimizing Kakao's Kanana chatbot for Android while exploring new interfaces for XR form factors.

Kakao Google Partnership Targets On-Device AI Enhancement

Korea's mobile platform giant Kakao has formed a strategic partnership with Google to collaborate on on-device AI services and integrate its technologies into Google's extended reality (XR) devices, including AI glasses

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. CEO Chung Shin-a announced the partnership during the company's earnings call, stating that Kakao will "begin full-fledged global collaborations to introduce next-generation AI experiences on the device side from this year"

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. The AI strategic partnership marks a significant expansion of Kakao's artificial intelligence capabilities beyond its existing partnership with OpenAI, which was announced last February

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Google's Android Team to Optimize Kanana AI Chatbot

The partnership will begin with Kakao working alongside Google's Android team to enhance on-device AI capabilities, specifically focusing on Kakao's Kanana on-device AI chatbot

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. Kanana in KakaoTalk is a chatbot-type service that functions within Kakao's flagship messenger app, using the company's own AI model to understand conversation context and proactively suggest schedule briefings, information updates, and product recommendations

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. Because it operates within the smartphone, on-device AI offers strengths in protecting user privacy. Kakao is optimizing Kanana to run smoothly on Android mobile devices, with the service having been in beta since October and scheduled for official launch in the first quarter

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Integration Into Google's Extended Reality (XR) Devices

Beyond mobile optimization, the partnership extends to Google's extended reality (XR) devices, where Kakao will establish interfaces for new form factors to enable user experiences such as hands-free messaging and natural language-based interactions

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. This collaboration on AI glasses and other XR hardware positions Kakao to expand its AI ecosystem beyond traditional smartphone interfaces. Karen Teo, Google's vice president for Asia-Pacific Platform Device Partnership, stated that the partnership presents an opportunity to combine Google's advanced AI technology with Kakao's innovative capability toward Korean users

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Cost Reduction Through Google Cloud and Tensor Processing Units (TPUs)

Kakao is also in discussions with Google Cloud to establish a cloud computing system based on Tensor Processing Units (TPUs) to reduce AI infrastructure costs

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. Chung explained that "financial burdens related to AI infrastructure are gradually increasing, so we are considering ways to optimally allocate various chips depending on the characteristics of our models and services"

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. As a company with the capability to effectively use TPUs in Korea, Kakao is discussing the operation of TPUs at a meaningful scale with Google Cloud to move away from costly graphics processing unit-based infrastructure

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Source: Korea Times

Source: Korea Times

Balancing Partnerships: OpenAI for Consumer Services, Google for Device Experiences

The strategic partnership with Google complements rather than replaces Kakao's existing partnership with OpenAI. Chung clarified that "Kakao plans to collaborate with Google on device experiences and cooperate with OpenAI on consumer services, building partnerships in non-overlapping areas"

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. ChatGPT for Kakao has already secured 8 million users, and the company plans to strengthen connectivity between KakaoTalk messaging and ChatGPT this year while introducing additional ChatGPT-based AI features

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. This dual-partnership strategy allows Kakao to efficiently cover the AI business by working with global partners at the forefront of their respective fields. The announcement comes as Kakao posted record-high financial results with 8.1 trillion won ($5.62 billion) in sales and 732 billion won in operating profit, up 3 percent and 48 percent year-over-year respectively

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