Kakao Splits Into KakaoAI and KakaoX, Targets $11.6B Valuation

Kakao announced a major restructuring, splitting into KakaoAI (AI-focused) and KakaoX (content/platform). KakaoX will oversee Kakao Entertainment, SM, and Piccoma, with a $1.7B investment fund for virtual assets and global fandom. This signals a strategic pivot toward AI-driven content and platform monetization, reshaping the competitive landscape for K-content production, distribution, and investment.