PUBG Developer Krafton Invests $136 Million in Game Studios, Expands AI Team for Future Gaming Innovations

Krafton Inc., the developer behind the popular battle royale game PUBG, has announced plans to invest over $200 billion won ($136 million) in over a dozen game studios this year. This strategic move is part of the company's ambitious growth plan, which aims to scale its business and create new intellectual properties (IPs) with franchise potential. Krafton's CEO, CH Kim, stated that the company is committed to investing in studios of various sizes around the world to diversify its content offerings and position itself for long-term growth.

In addition to its investment in game studios, Krafton is also expanding its artificial intelligence (AI) team. The company has dedicated 80 engineers to deep learning and AI, with plans to add another 35 in 2025. This investment in AI talent and R&D capabilities allows Krafton to create more immersive and dynamic gaming experiences, as demonstrated by the Co-Playable Character (CPC) technology showcased at CES 2025. The CPC model, built in collaboration with NVIDIA, enables non-player characters (NPCs) to engage in real-time conversations, strategic cooperation, and flexible responses tailored to in-game scenarios, enhancing the overall gaming experience.

Krafton's commitment to AI-driven innovation is reflected in its investment in various AI technologies, such as natural language processing, 3D vision and animation, voice recognition and synthesis, reinforcement learning, and multi-modal learning. By focusing on AI, Krafton is pushing the boundaries of what is possible in gaming and maintaining a competitive edge in the market.

The company's latest financial report shows that Krafton invested in 13 studios in the first three quarters of 2024, up from 11 investments in 2023 and just five in 2022. Notable deals include the acquisition of Tango Gameworks and an IP licensing agreement with Pocketpair to develop Palworld Mobile. Krafton's shares have risen over 70% since the start of 2024, and the company has posted three consecutive quarters of record revenues last year, generating nearly $1.4 billion in the period from January 1 to October 31, 2024.

In conclusion, Krafton's investment in game studios and expansion of its AI team demonstrate the company's commitment to long-term growth and innovation in the gaming industry. By diversifying its content offerings and pushing the boundaries of AI-driven gaming experiences, Krafton is well-positioned to maintain its competitive edge and create new IPs with franchise potential.