PUBG maker Krafton invests $70M in AI-driven game development

Krafton, the South Korean gaming giant behind PUBG: Battlegrounds and InZOI, is implementing an “AI First” strategy that will reshape its entire development approach. The company plans to invest nearly $70 million in GPU infrastructure and restructure its operations around artificial intelligence, signaling a major shift in how game studios are leveraging AI to automate workflows and enhance development processes.

What you should know: Krafton is making substantial financial commitments to transform into an AI-driven organization.

• The company will spend more than 100 billion Korean won (approximately $70 million) to build a dedicated GPU cluster for AI operations.
• An additional ₩30 billion will be invested annually to help employees integrate AI tools into their daily work.
• The AI platform is expected to be completed by the second half of 2025.

How it works: The new strategy centers on implementing “agentic AI” to automate various aspects of game development and business operations.

• Krafton will use AI for “workflow automation” and strengthen “AI R&D and in-game AI services” using its new infrastructure.
• The company plans to establish an “AI-centered” management system to guide decision-making processes.
• Human resources and organizational operations will be restructured specifically to support the AI First initiative.

In plain English: Agentic AI refers to artificial intelligence systems that can act independently to complete tasks without constant human oversight—like having a digital assistant that can manage entire workflows from start to finish rather than just answering questions.

The big picture: Krafton’s move reflects a broader trend of tech companies integrating AI into their core operations rather than treating it as an add-on feature.

• Companies like Shopify, an e-commerce platform, and Duolingo, a language learning app, have already made AI central to their internal workflows.
• The gaming industry appears particularly ripe for AI transformation, with investors betting that AI-driven cost reductions will significantly boost profits.

Why this matters: Gaming companies are under increasing pressure to streamline development costs while maintaining creative output, making AI automation an attractive solution for balancing efficiency with innovation.

• According to the Financial Times, investors planning to take EA private are “betting that AI-based cost cuts will significantly boost EA’s profits in the coming years.”
• Krafton’s comprehensive approach suggests that AI integration in gaming may soon move beyond experimental phases into fundamental business restructuring.