PUBG maker Krafton is an AI defense company now, signs deal with Korean aerospace firm that includes investment of up to $1 billion aiming 'to expand the physical AI ecosystem'

PUBG maker Krafton is getting into the defense business: The company has signed an investment deal with Hanwha Aerospace that aims to "develop and commercialize technology across various sectors, including defense," with a particular focus on "physical AI."

Krafton formalized its intent to become an "AI-first company" in 2025, a move that included a commitment to spend $70 million on a GPU cluster that will "serve as the foundation for accelerating the implementation of agentic AI." Agentic AI is...