KakaoTalk and other services of Kakao Corp. faced a major outage after a fire broke out at a data center in the outskirts of the country’s capital, Seoul (Photo Illustration by Thiago Prudencio/SOPA Images/LightRocket via Getty Images)
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Shares of South Korea’s top messaging app plunged Monday after a major data center outage over the weekend disrupted service for more than 53 million users worldwide.
The outage was triggered by a fire at the data center, which also hosts servers for other major Korean tech companies. KakaoTalk is not only South Korea’s top messaging app, it is also heavily relied on for everything ranging from online payments, gaming and ride hailing as well as log-in verification for other major websites.
Kakao reported 47.5 million monthly active users in Korea during the second quarter. That’s more than 90% South Korea’s population of 51.74 million people, as of Nov. 1, 2021.
South Korean President Yoon Suk-yeol described the impact of Kakao’s outage as “no different from the national communication network.” He called on relevant ministries to investigate the exact cause and scope of the disruptions and drum up plans to prevent similar incidents.
“If there is a monopoly or an oligopoly situation where it manipulates the market, we need to take systemic measures from a nationwide level for the interest of the people,” Yoon said Monday.
On Monday, shares of Kakao Corp. plunged more than 9% at the open, while internet giant Naver shed 2% in the morning session before paring losses. Naver also briefly faced limited disruptions as the data center also hosts servers for the company, but resumed most of its operations on Sunday.
The data center’s operator, SK Inc, also fell more than 4% at the open. Kakao’s subsidiaries Kakao Pay, Kakao Bank and Kakao Games all plunged more than 7% in Korea’s morning session.
Kakao initially announced service disruptions Saturday afternoon, which continued into Sunday morning.
“We bow our heads and sincerely apologize to all users who are facing Kakao service disruptions at the moment,” the company’s co-CEOs said in a statement over the weekend.
“We promise to take the maximum measures to prevent issues like these from recurring as well as investigating the cause of this incident,” they said, adding that the company has been working to back up data to other facilities within the country as soon as the fire broke out.
“This is a rare case of one data center being completely affected, so it’s taking a lot longer than expected to implement these [back up] measures,” they said.
In a Monday morning tweet, Kakao said some services have resumed, but users continued to report issues.
An employee arranges a salad dressing display at an Amazon Fresh grocery store on December 12, 2024 in Federal Way, Washington.
David Ryder | Getty Images
Amazon is closing four more Fresh supermarkets in Southern California as the e-commerce giant continues to focus its grocery strategy around Whole Foods and delivery.
The closures will take place in the coming weeks, Amazon confirmed to CNBC. They follow the shuttering of four other U.S. locations in recent months, in Washington, Virginia, New York and a Los Angeles suburb.
“Certain locations work better than others, and after an assessment, we’ve made the decision to close these Amazon Fresh locations,” Amazon spokesperson Griffin Buch said in a statement. “We’re working closely with affected employees to help them find new roles within Amazon wherever possible.”
At one Fresh supermarket in La Verne, California, employees were told to gather for an all-hands meeting on Wednesday, according to an internal message viewed by CNBC. They learned at the meeting that the store would close in mid-November, and that employees would receive a severance package, according to a person familiar with the matter who asked not to be named because the details were confidential.
The other three stores that are closing are in cities of Mission Viejo, La Habra and Whittier.
Last week, Amazon said it intends to close 14 Fresh grocery stores in the U.K. and convert its five other locations there into Whole Foods markets.
Amazon said it regularly evaluates its store portfolio, which can lead to opening, reopening, relocating or closing certain locations. In the U.S., the company has more than 60 remaining Fresh stores. Last year, the company removed its “Just Walk Out” cashierless technology from the stores. It’s also been culling its footprint of Go cashierless convenience stores.
Amazon has been determined to become a major grocery player for nearly two decades. The company launched Amazon Fresh in 2007, then a pilot project for fresh food delivery, before acquiring upscale chain Whole Foods for $13.7 billion in 2017, its biggest purchase on record.
Amazon debuted its Fresh grocery chain in 2020, with an eye toward mass-market shoppers. The rollout has been turbulent since its early days.
The company opened a flurry of Fresh locations by 2022, but the expansion plans ran into CEO Andy Jassy’s widespread cost-cutting efforts as the company reckoned with the impact of rising interest rates and soaring inflation. In 2023, Amazon announced it would shut some Fresh stores and halt further openings temporarily as it evaluated how to make the chain stand out for shoppers.
While it’s closing Fresh stores, Amazon continues to “innovate and invest in making grocery shopping easier, faster, and more affordable,” Buch said. The company still maintains 500 Whole Foods locations and has opened mini “daily shop” Whole Foods stores in New York City.
On Wednesday, Amazon also launched a new “price-conscious” grocery brand that will be offered online and in its physical stores. And last month, Amazon expanded same-day delivery of fresh foods to more pockets of the U.S.
Jassy and other company executives have touted the success of sales of “everyday essentials” within its online grocery business, which refers to items such as canned goods, paper towels, dish soap and snacks. Jassy told investors at the company’s annual shareholder meeting in May that he remains “bullish” on grocery, calling it a “significant business” for Amazon.
Inside Google’s quantum computing lab in Santa Barbara, California.
CNBC
Quantum computing stocks are wrapping up a big week of double-digit gains.
Shares of Rigetti Computing, D-Wave Quantum and Quantum Computing have surged more than 20%. Rigetti and D-Wave Quantum have more than doubled and tripled, respectively, since the start of the year. Arqit Quantum skyrocketed more than 32% this week.
The jump in shares followed a wave of positive news in the quantum space.
Rigetti said it had purchase orders totalling $5.7 million for two of its 9-qubit Novera quantum computing systems. The owner of drugmaker Novo Nordisk and the Danish government also invested 300 million euros in a quantum venture fund.
In a blog post earlier this week, Nvidia also highlighted accelerated computing, which it argues can make “quantum computing breakthroughs of today and tomorrow possible.”
OpenAI’s new artificial intelligence video app Sora has already grabbed the top spot in Apple‘s App Store as its number one free app, despite being invite-only.
Sora, which was launched on Tuesday, allows users to create short-form AI videos and share them in a feed. The app is available to iPhone users but requires an invite code to access.
Here’s how to snag a Sora app invite code:
First, download the app from the iOS App Store. Note that Sora requires iOS 18.0 or later to be downloaded.
Login using your OpenAI account.
Click “Notify me when access opens.”
A screen will then appear asking for an access code.
Currently, OpenAI has said that it is prioritizing paying ChatGPT Pro users for Sora access. The app is only available in the U.S. and Canada, but is expected to roll out to additional countries soon, the company said.
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If you do not know someone who can provide an access code, several people are sharing invite codes on the official OpenAI Discord server, as well as on X and Reddit threads.
Once you input your access, you will be able to start generating AI videos using text or images. Users are also able to cameo as characters in their videos as well as “remix” other posts.
The app is powered by the new Sora 2.0 model, an updated version of the original Sora model from last year. The video generation model is “physically accurate, realistic, and more controllable” than prior systems, the company said in a blog post.