Krafton, Hanwha to jointly develop defense AI robotics, form joint venture
Krafton, the South Korean maker of the hit game PUBG, and Hanwha Aerospace have signed a memorandum of understanding to jointly develop physical AI and robotics technologies. The two companies also plan to establish a joint venture to advance technology development and commercialization across defense and other sectors.
Under the agreement, Krafton will apply the data operations and virtual-environment simulation capabilities it has sharpened through game development to train and validate physical AI systems. Hanwha Aerospace will provide real-world environments in defense manufacturing and other industrial settings to test and apply the technologies.
The partners intend to form a joint venture that will serve as a demonstration and testing hub for the jointly developed technologies. The plan is to build an operating framework and pursue phased projects to expand collaboration over time, ultimately moving from development to commercial deployment.
Krafton chief executive Kim Chang-han said the JV would connect development outcomes to commercialization and help the company grow into a global defense-technology player on a par with firms like Anduril Industries. The collaboration also envisions expanding the broader industrial ecosystem around the new technologies.
Beyond the technology tie-up, Krafton will participate as an investor in a fund managed by Hanwha Asset Management. The fund aims to raise about $1 billion and will focus on opportunities in AI, robotics and defense, with the goal of identifying high-potential partners across the value chain for co-development and commercialization.
Krafton has already been expanding beyond game development. Last year, it established a robotics research entity in the United States, Rudo Robotics, to pursue universal robot intelligence by combining robotics, physics and computer science. In February, Krafton also set up a Korea-based subsidiary led by its chief AI officer to deepen its AI-enabled initiatives.
For U.S. readers, the deal signals growing cross-border collaboration between gaming and defense tech, with potential implications for international supply chains, AI and robotics development, and defense partnerships. It reflects a broader trend of technology consolidation where game developers’ data-driven simulation capabilities are leveraged to accelerate real-world robotic systems and autonomous platforms, potentially affecting suppliers, markets and policy considerations in both Asia and North America.