Hold onto your controllers, gamers, because Krafton, the powerhouse behind PUBG and Subnautica, is making a bold move that could reshape the future of gaming. They're going all-in on AI, declaring themselves an 'AI First' company. But here's where it gets controversial: can a company known for its immersive, human-driven experiences truly thrive in a world dominated by artificial intelligence? Let's dive in.
In its latest fiscal report, Krafton, which also owns Tango Gameworks (the brains behind Hi-Fi Rush), doubled down on its AI ambitions. This isn't just a passing trend—the company first hinted at this shift in a Korean-language document shared with investors back in October 2025. Now, in the English version of its Q3 2025 report, Krafton is crystal clear: AI is the cornerstone of its strategy for sustainable growth. But what does this mean for players? According to the report, it's all about delivering 'differentiated user experiences' and driving innovation across the board. Sounds promising, but how will this play out in practice?
And this is the part most people miss: Krafton isn't just dipping its toes into AI—it's diving headfirst. The company has invested a staggering KRW 100 billion ($70 million) in a GPU cluster to fuel its AI vision. This isn't just about automating tasks; it's about enabling 'large-scale creative experimentation and organizational transformation.' Imagine AI-driven game worlds that evolve in real-time or characters that learn and adapt to your playstyle. It's a game-changer—literally.
But here's the kicker: Krafton has teamed up with SK Telecom to develop a proprietary AI model with five billion parameters. Yes, you read that right—five billion. This isn't your average AI; it's a powerhouse capable of everything from large-scale training to in-game implementation. The goal? To create an 'integrated AI development and deployment system' that could revolutionize how games are made and played. Is this the future of gaming, or are we sacrificing the human touch for technological advancement?
One of the most exciting (and potentially polarizing) aspects of this shift is Krafton's focus on Co-Playable Characters (CPCs). In the first half of 2026, the company plans to introduce PUBG Ally, an AI companion in PUBG: Battlegrounds Arcade Mode. This isn't just another NPC—it's a strategic partner designed to offer a 'human-like' gameplay experience. But here's the question: will players embrace AI companions, or will they feel like something's missing without a real person on the other end?
Krafton isn't stopping at AI, though. The company is also committed to developing 'New Franchise IP,' with 11 new projects in the works as of November 2025—a massive jump from the five titles in development last year. This dual focus on AI and new IPs raises another intriguing question: Can Krafton balance innovation with the creativity that made its games so beloved in the first place?
As we stand on the brink of this AI-driven gaming revolution, one thing is clear: Krafton is betting big on the future. But what do you think? Is AI the next frontier in gaming, or are we risking the very essence of what makes games special? Let us know in the comments—this is a conversation that's just getting started.
