Krafton Embraces AI: PUBG Maker Announces Radical 'AI-First' Strategy

PUBG maker Krafton is turning into an 'AI first' developer

Krafton, the company behind games such as PUBG: Battlegrounds and the Sims-like InZOI, is making a big push into using AI within the company. Under this new "AI First" strategy, Krafton plans to use agentic AI to help automate work and implement an "AI-cenetered" management system, according to a translation of a press release. The company also plans to spend more than 100 billion Korean won, a figure that equates to nearly $70 million, to build a GPU cluster. Using its infrastructure, Krafton will pursue "AI workflow automation, as well as strengthen AI R&D and in-game AI services," the translated release says. Krafton aims to complete its AI platform by the second half of next year. The company is also going to invest about ₩30 billion every year to help employees apply AI tools into their work and it will also restructure its "HR and organizational operations" in support of the "AI First" strategy. Tech companies like Shopify and Duolingo have made AI a key part of their internal operations as well, and Krafton may not be the only big gaming company to make big structural changes due to AI. The investors that plan to take EA private are "betting that AI-based cost cuts will significantly boost EA's profits in the coming years," the Financial Times reported.

PUBG and InZoi publisher Krafton declares itself an "AI-first company", "placing AI at the centre of problem solving"

Efforts start with a "complete reorganisation placing AI at the centre of problem solving". PUBG and Subnautica 2 publisher Krafton has declared itself an "AI-first company", announcing a move to "place AI at the centre of problem solving" via a "complete" company reorganisation. The megacorp outlined its "transition to an AI-first company" in a Korean-language statement posted to the official website that detailed the goals of its new strategy to "prioritise AI as a central and primary means of problem-solving", "fostering change in individuals and organisations, increasing company-wide productivity, and accelerating mid- to long-term corporate value growth". "Starting today, Krafton will automate work centered on Agentic AI and fully implement an AI-centered management system where members focus on creative activities and complex problem solving," said Krafton CEO Kim Chang-han, as translated by machine. "We will leap forward as a company that promotes the growth of members and expands the organisation's areas of challenge through AI." As part of this commitment, Krafton's earmarked around $69.7 million (100 billion Korean won / £52.3 million) to invest in a GPU cluster, and support the multi-stage tasks required for "sophisticated reasoning and iterative planning". This, Krafton believes, will serve as a foundation for accelerating its AI tech, which it hopes to complete and have up and running in the second half of 2026. Another $20.8 million (30 million Korean won / £15.5m) will also be invested in its workforce to train its staff to use AI tools. It'll be through this new infrastructure that Krafton believes it will strengthen AI R&D and in-game AI services. Krafton's position is not an outlier in the industry. Back in 2024, Square Enix CEO Takashi Kiryu stated the company would be "aggressive in applying AI", with developers admitting they "dabbled" with AI for the ill-fated shooter Foamstars, Professor Layton studio Level-5 has used AI tool Stable Diffusion, and even Capcom has admitted experimenting with generative AI too. Sega also has an in-house AI team. In fact, a recent survey conducted by the Computer Entertainment Supplier's Association (CESA), the organiser of Tokyo Game Show, showed that over half of Japanese game companies are using AI in their development.

Krafton is now an 'AI-first company,' will spend $70 million on a GPU cluster to 'serve as the foundation for accelerating the implementation of agentic AI'

The new strategy represents "a complete reorganization of the company's operational development system, placing AI at the center of problem solving." Earlier this week, Pocketpair Publishing boss John Buckley said his company isn't interesting in handling games built with generative AI: "If you're big on AI stuff or your game is Web3 or uses NFTs, there are lots of publishers out there [who will], but we're not the right partner for that." One of those partners, it seems, is PUBG maker Krafton, which announced today that it is transforming into an "'AI-first' company." The announcement, posted on Krafton's Korean-language site and translated via Google, says the change will represent "a complete reorganization of the company's operational development system, placing AI at the center of problem solving." The goals of the new strategy include "fostering change in individuals and organizations, increasing company-wide productivity, and accelerating mid- to long-term corporate value growth," the company said. To make the magic happen, Krafton said it will invest roughly 100 billion Korean won ($69.7 million) in a GPU cluster to "support multi-stage tasks requiring sophisticated reasoning and iterative planning [and] serve as the foundation for accelerating the implementation of agentic AI." Another 30 billion won ($21 million) will be allocated annually, beginning in 2026, "to actively support its employees in directly utilizing and applying various AI tools to their work." "Through our AI First strategy, Krafton will expand the growth opportunities for each member, expand creative attempts centered on player experience, and lead AI innovation across the gaming industry," Krafton CEO Kim Chang-han said. "We will establish operational standards centered on AI and present best practices that can be referenced in the global gaming industry." What this works out to in practical terms remains to be seen but on a gut level, well, I think it sounds terrible. Broadly speaking, I see two likely outcomes: Layoffs, because C-suite types love to imagine that good videogames can be made by thinking machines that don't need to be paid or given time off; or a catastrophic collapse when the AI bubble pops and companies find themselves sitting on mountains of Nvidia hardware that's suddenly destined for Craigslist, and of course the mountains of debt they took on to acquire it in the first place. Maybe it'll be the ol' one-two: First the layoffs, then the collapse. That's how these things often work out, after all. And hey, maybe it'll all work out. It's entirely possible that Krafton's vision for the future is right on the money, and all of this will indeed pave the way to a better, more productive, and more creative future for all of us. I don't think so, and JP Morgan chairman and CEO Jamie Dimon would seem to agree -- not that AI is going to give us good videogames, of course, but that the bubble is going to pop and it's going to be pretty bad when it does.

Krafton is doubling down on AI

Krafton is the latest of many gaming companies to openly declare its love for artificial intelligence, announcing that it is doubling down on transforming into an "AI-first" business. This will apply not only to game development, but to all aspects of the organisation: automated workflows, AI-driven HR, management systems, in-game AI, and an entire infrastructure built around it. Unsurprisingly, this statement has been very poorly received by fans. And there are some fiery discussions going on over at Reddit, with users pointing out how this will have a major (negative) impact on the quality of future games. A statement from Krafton reads: (translated with Google): Krafton builds a virtuous ecosystem of learning, sharing, and experimentation so that members can directly experience and lead AI First culture. Support AI learning and use of work tools, focusing on in-house platforms 'AI learning hubs (Learning Hub)', and sharing practical application cases and know-how company-wide. It also operates 'AI Roundtable (Roundtable)' and 'AI Hackathon (Hackathon)' to spread a culture of mutual learning and practice-oriented use of AI across occupations and organizations. One user on Reddit writes: "This entire company just declared its own death with this." Many point out that rather than going all in on AI, gaming companies should focus on a human first approach. With genuine creativity as the driving factor, something that most people argue that AI at the moment is incapable of. Also, the very fact that Krafton mentions how AI will be used for HR, has stirred up some particularly strong feelings. "Artificial intelligence being an infrastructure for human resources sounds like the beginning of the end times." Attempts to implement more AI is of course nothing new. And we've seen both EA and Microsoft go all in, with clear plans to take it as far as possible. But the question remains. How will this end up affecting the quality of the games? We can only wait and see.