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

Tencent Holdings Ltd TCEHY partner Krafton Inc of PUBG: Battlegrounds allocated over 200 billion won ($136 million) to over twelve game studios.

The South Korean gaming company is expanding its portfolio of original content in sync with its artificial intelligence investment, Bloomberg cites CEO Kim Changhan.

Changhan told Bloomberg that Krafton dedicated 80 engineers to deep learning and AI and plans to add 35 in 2025.

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Changhan told Bloomberg that Krafton had doled $680 million in building stakes in game studios over the past two years, including Madrid-based EF Games and Japan’s Tango Gameworks.

Krafton tapped Nvidia Corp NVDA to showcase more lifelike non-player characters, which will debut in Krafton’s Inzoi life simulation game on PC in March, they announced at a CES event last week.

Krafton also targets similar AI features on the device where players play PUBG.

Since assuming the CEO role in 2020, Changhan has boosted investments in India. The company has over 100 employees working in India, Kim told Bloomberg.

Last November, Elon Musk tweeted that his AI startup, xAI, would begin an AI-driven game studio, challenging the large, corporate-owned game studios, which prioritize profit over player engagement and creativity. Musk had previously voiced his appreciation for Elden Ring from Japanese studio FromSoftware and Diablo IV from Microsoft Corp’s MSFT Blizzard.

Last October, JPMorgan analysts expressed optimism over mobile gaming trends and spending on consoles backed by an intense game slate. They flagged Roblox Corp RBLX as a favorite backed by engagement trends, ads, and commerce business ramping and free cash flow.

JPMorgan also highlighted Applovin Corp APP as the leading in-app monetization platform for mobile gaming companies. They pointed to Electronic Arts Inc.’s EA position as the pure-play game publisher in the industry.

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