The future of 'Kaithi 2', a highly anticipated sequel and a pivotal part of the Lokesh Cinematic Universe (LCU), remains uncertain following recent developments concerning director Lokesh Kanagaraj's packed schedule. Lokesh Kanagaraj officially announced his next directorial venture will be a film starring Telugu superstar Allu Arjun, tentatively titled 'AA23' or 'LK7'. This announcement was made around January 14, 2026, coinciding with Pongal and Sankranti festivities. This new project, expected to be a pan-Indian film with music by Anirudh Ravichander, is set to begin shooting later this year. The immediate consequence of this announcement is the further delay of 'Kaithi 2', a film that fans have been eagerly awaiting since the success of its 2019 predecessor. The importance of 'Kaithi 2' stems from its role as a prequel for Karthi's character, Dilli, and its crucial connections to other LCU projects like 'Vikram 2' and the 'Rolex' standalone film. Adding to the uncertainty, actor Karthi, who plays the lead in 'Kaithi', recently made a public statement during promotions for his film 'Vaa Vaathiyaar', confirming he has "no update" on the status of 'Kaithi 2'. He explicitly stated that Lokesh Kanagaraj is the appropriate person to provide clarity on the sequel. This response from Karthi has fueled speculation that 'Kaithi 2' might be significantly postponed, or even shelved, due to Lokesh's commitments, which also include Rajinikanth's 'Coolie' and his acting debut in 'DC'. While Lokesh has previously confirmed 'Kaithi 2' is on his slate, his current focus on new ventures means fans may have to wait a considerable period for the next installment in the LCU.