Krafton Launches ‘AI First’ Strategy with Major Investments

Krafton, the developer known for popular titles like PUBG: Battlegrounds and the simulation game InZOI, is shifting its focus towards an “AI First” development strategy. This initiative aims to integrate artificial intelligence across various aspects of the company’s operations, enhancing both productivity and innovation.

The company plans to invest over 100 billion Korean won, approximately $70 million, to establish a powerful GPU cluster. This infrastructure will be essential for automating workflows, bolstering research and development in AI, and enhancing in-game AI services. According to a translated press release, Krafton expects to have its AI platform operational by the second half of 2024.

Krafton will allocate around ₩30 billion annually to support its employees in incorporating AI tools into their daily tasks. Alongside this financial commitment, the company will also restructure its human resources and organizational operations to better align with its AI-centric vision. This transformation reflects a growing trend in the tech industry, where companies like Shopify and Duolingo have integrated AI into their internal processes.

As the gaming sector increasingly embraces AI, Krafton’s strategy may signal a significant shift within the industry. Notably, investors seeking to take Electronic Arts (EA) private are banking on AI-driven cost reductions to enhance the company’s profitability in the coming years, as reported by the Financial Times.

Krafton’s move towards an “AI First” approach highlights its commitment to staying competitive in a rapidly evolving market. By investing heavily in AI technology and infrastructure, the company aims to streamline operations and improve player experiences through advanced AI applications. As the initiative unfolds, it will be interesting to observe how Krafton and other gaming firms leverage AI to reshape their business models and enhance their offerings.