The partnership announced Friday marries Krafton's AI research capabilities and simulation expertise — honed through operating large-scale virtual worlds such as PUBG: Battlegrounds — with Hanwha Group's sprawling defense and manufacturing infrastructure.
The two companies said they would collaborate on core physical AI research and development, field testing and application scenarios, and the buildout of shared technical and operational frameworks.
The companies said they plan to set up a joint venture to fast-track the commercialization of co-developed technologies and deepen their long-term cooperation.
Krafton will also invest in a fund managed by Hanwha Asset Management that targets AI, robotics and defense sectors, with a fundraising goal of about $1 billion. The fund aims to identify high-potential partners across the physical AI value chain and funnel investments toward joint development and commercialization.
"We will establish a joint venture with Hanwha and grow it into a global defense technology firm on par with Anduril," said Kim Chang-han, CEO of Krafton.
Hanwha Aerospace CEO Son Jae-il said AI technology is rapidly evolving beyond conventional industry applications into physical AI for the defense domain. He added that the partnership with Krafton would set a new technological benchmark in the field.
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