AI company Upstage has finalized its acquisition of AXZ, the operator of the portal Daum. Upstage plans to integrate its large language model (LLM) with Daum's search and content data to build a next-generation AI portal aimed at creating an accessible AI service ecosystem.
On May 7, Upstage signed a formal acquisition agreement with Kakao, which will transfer its entire stake in AXZ. This marks Kakao's separation from the portal business 12 years after it absorbed Daum in 2014.
The two companies had signed a memorandum of understanding (MOU) in January to initiate the acquisition, followed by four months of in-depth due diligence. The MOU outlines the transfer of Kakao's entire AXZ stake to Upstage, with Kakao acquiring a minority stake in Upstage through a stock exchange.
Upstage aims to transform Daum into an AI-driven portal and implement 'Context AI' services. This shift is expected to move away from keyword-based searches to a portal that understands user intent and context.
Upstage's proprietary LLM, 'Solar,' will be central to the implementation of Context AI services. The company plans to combine Solar with Daum's extensive Korean language data accumulated from news, cafes, and blogs to enhance AI search capabilities and restructure the portal's services around AI.
Additionally, Upstage anticipates that the acquisition will synergize with the government's 'Independent AI Foundation Model' project.
Kim Seong-hoon, CEO of Upstage, stated, "The combination of Upstage's AI technology and the 30-year history of the Daum portal will mark a symbolic turning point in ushering in a new era of AI portals."
* This article has been translated by AI.
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