The archive · AI & Models · Product decision · 2023–2026
Warp Space bets user-created AI characters make Caveduck a global chat platform
Korean startup WARP SPACE lets anyone create AI characters others pay to chat with; 1M+ users, 30M monthly conversations, ₩4.3B Series A led by ID Ventures.
WARP SPACE (워프스페이스, Caveduck 케이브덕)
What the business is
Caveduck (케이브덕) is a Korean AI character-chat app where users create AI characters by setting image, personality and preferences, then share them for others to chat with; conversations are paid, and WARP SPACE splits revenue with the creators — a YouTube-style model for AI characters.
Starting capital：₩4.3B (~$2.85M) Series A led by ID Ventures, with Kona Venture Partners, Maple Investment Partners and Paramount Investment co-investing (April 2026)
How it started
CEO Youngbin Kim founded WARP SPACE in Seoul in 2023. The team launched Caveduck as an Android and iOS app in October 2024, betting that the taste for emotional AI companions cultivated by Korean and Japanese character culture could travel globally. The platform lets users create AI characters with images, preferences and personality, share them, and earn revenue when others pay to chat with them.
What happened
By early 2026 Caveduck had passed 1 million registered users and 110,000 user-created characters, with more than 60% of users outside Korea (67% per KORIT: Korea 33%, US 16%, Japan 9%, Mexico 6%, Taiwan 5%) and 30M+ conversations a month from 10,000+ active creators. In April 2026 it closed a ₩4.3B Series A led by ID Ventures, with game-focused Kona Venture Partners co-investing; investors cited the YouTube-like creator-revenue loop, IP-partnership potential, and falling LLM costs. The funding is earmarked for AI R&D, localization and overseas marketing.
How it ended up
Still scaling: after its April 2026 Series A, Caveduck is investing in AI optimization, localization and marketing, with more than half its users already outside Korea.
Background
Caveduck is a Korean AI character-chat platform operated by WARP SPACE, founded in Seoul in 2023 by CEO Youngbin Kim and launched as an Android and iOS app in October 2024. Users create AI characters by setting an image, personality and preferences, publish them, and let other users pay to chat with them; WARP SPACE splits the conversation revenue with creators, a model investors describe as YouTube for AI characters.
The bet is that the community, not a studio, produces the best characters. By early 2026 that produced 1M+ registered users, 110,000+ user-created characters, 10,000+ monthly active creators and 30M+ monthly conversations — with more than 60% of users outside Korea (67% per KORIT: Korea 33%, US 16%, Japan 9%, Mexico 6%, Taiwan 5%). In April 2026 the company closed a ₩4.3B Series A led by ID Ventures, with Kona Venture Partners, Maple Investment Partners and Paramount Investment joining; investors cited the compounding creator loop, IP-partnership potential and falling LLM costs.
The timing bet was cultural and structural. Edaily reported in July 2026 that Korean venture investment in games had shrunk to about one-fifth of its 2022 level while funds flowed into AI character chat — Zeta's ₩50B Series D, Caveduck's ₩4.3B Series A, Bunker Kids' ₩2B round — as Gen Z shifted leisure time from games to short-form content and character relationships. The sector's risks are visible too: rival Zeta faces copyright lawsuits from webtoon companies, and overseas regulators are tightening rules on minors' use of companion services.
What has to be true
- Caveduck bet that users, not studios, create the most engaging characters, making supply compound without company spend.
- Its paid-chat revenue split gave creators a direct income stream — a YouTube-like flywheel that aligns creators with platform growth.
- Early global pull proved the bet could travel: 60%+ of users were outside Korea within about 18 months of launch, led by the US and Japan.
- It timed falling LLM costs and Gen Z's drift away from games, catching Korean VC money as it rotated out of gaming startups.
What can be applied
Let the community build the supply side: Caveduck's creator economy compounds a character library that pure chatbot apps must spend to match, and it scales across languages.
Aftermath
As of July 27, 2026, Caveduck is scaling: after its ₩4.3B Series A in April 2026 it is spending on AI capability, localization and overseas marketing, with 67% of users outside Korea and more than 110,000 user-created characters. The sector is a tailwind — Korean venture funds are rotating from games into AI character chat, and Kona, a game-focused investor, co-invested explicitly because of the creator-fandom dynamic and falling LLM costs. Sector-level risks remain: copyright litigation against rival Zeta and tightening overseas rules on minors using companion services.
Sources
- AI 캐릭터 채팅 '케이브덕' 운영사 워프스페이스, 43억원 시리즈A 투자 유치
- WARP SPACE Raises $2.85M Series A to Advance AI Character Chat Platform 'Caveduck'
- 誰もが「AIキャラクター」でお金を稼ぐ...YouTubeのチャットプラットフォームが「高額資金調達成功」
- Talking to AI Characters Rather Than Playing Games… Investments Followed Suit
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