KRAFTON and Hanwha Aerospace today announced the signing of a Memorandum of Understanding (MOU) to jointly develop physical AI technology and set the grounds for a Joint Venture (JV). The partnership combines KRAFTON’s advanced AI research and software development capabilities with Hanwha Group’s industrial infrastructure in defense and manufacturing.
KRAFTON’s accumulated experience in operating large-scale game data and physics-based virtual worlds serve as core assets in training and verifying physical AI software. Built on this foundation, KRAFTON plans to power the real-world operation of physical AI, while validating feasibility across phased steps.
The strategic alliance will focus on three key areas:
- Joint research and development of core technologies behind physical AI
- Validating scenarios for technology implementation and physical application
- The establishment of technical and operational systems
Building on this alliance as a long-term partnership, KRAFTON plans to launch a JV with Hanwha to seamlessly advance joint development outcomes from implementation to commercialization.
KRAFTON will also invest in a fund established by Hanwha Asset Management centered on AI, robotics, and defense, with a target size of USD 1 billion. This investment in technologies and companies aims to expand the physical AI ecosystem and strengthen technology competitiveness. The fund will serve to identify partners with high growth potential across the core value chain.
“KRAFTON will accelerate the development of physical innovation by combining the company’s AI technology and software expertise with Hanwha’s industrial strengths,” said KRAFTON CEO CH Kim. “As our JV with Hanwha evolves to materialize co-development outcomes, we expect it to emerge as a global defense technology company like Anduril.”
“AI technology is rapidly growing beyond industries, with new physical AI applications in the defense sector,” said Jae-il Son, Hanwha Aerospace President and CEO. “Our partnership with KRAFTON will offer a new paradigm standard in areas of physical AI and future defense.
Leveraging its core AI technology and strengths as a global game publisher, KRAFTON continues to conduct long-term research in physical AI through a newly established robotics research entity, Ludo Robotics, based in the United States with operations in Korea led by KRAFTON CAIO Kangwook Lee. KRAFTON plans to explore long-term innovation and synergies built on two main pillars driving the CAIO organization: robotics research through Ludo Robotics and business implementation possibilities through the JV with Hanwha Group.
More information about KRAFTON can be found at https://krafton.com/en.
About KRAFTON, Inc.
Headquartered in Korea, KRAFTON, Inc. is a global game developer and publisher dedicated to pioneering unforgettable worlds for players everywhere. Founded in 2007, KRAFTON brings together a diverse portfolio of studios including PUBG STUDIOS, Striking Distance Studios, Unknown Worlds, Neon Giant, KRAFTON Montréal Studio, Bluehole Studio, RisingWings, 5minlab, Dreamotion, ReLU Games, Flyway Games, Tango Gameworks, inZOI Studio, JOFSOFT, Eleventh Hour Games, OmniCraft Labs, Olivetree Games, Loonshot Games, and 9B STUDIO. Each is united by a commitment to bold imagination and breakthrough game-making.
KRAFTON’s franchises and titles include PUBG: BATTLEGROUNDS, PUBG MOBILE, PUBG: BLINDSPOT, inZOI, Subnautica, MIMESIS, Hi-Fi Rush, Dinkum, TERA, My Little Puppy, and more. Guided by its vision to pioneer the path to players’ dreams, KRAFTON is focused on building franchises that last and delivering experiences that resonate with players around the world.
For more information, visit www.KRAFTON.com.
About KRAFTON India
In India, KRAFTON is responsible for premier mobile games, including BATTLEGROUNDS MOBILE INDIA (BGMI), which has surpassed 250 million downloads, Bullet Echo India, Road To Valor: Empires, and CookieRun India, among others. Committed to enhancing the start-up ecosystem in India, KRAFTON has invested over $200 million in several Indian startups across interactive entertainment, gaming, Esports, and technology, since 2021. KRAFTON actively supports India’s game development ecosystem through its KRAFTON India Gaming Incubator.
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