KRAFTON is taking bold steps to secure new food sources. After meeting with OpenAI Chief Executive Officer (CEO) Sam Altman to explore business opportunities related to artificial intelligence (AI), the company is continuing its investments in India, a global emerging market. The gaming industry is evaluating that a two-stronghold structure centered on Nexon and KRAFTON is becoming more established.
According to the gaming industry on the 6th, Kim Chang-han, CEO of KRAFTON, met with Altman, who was visiting South Korea on the 4th, to discuss AI development plans specialized for games. CEO Kim was the only domestic gaming industry representative to meet with CEO Altman. KRAFTON discussed collaboration plans, including the development of AI NPC "CPC" (cooperative play character) based on high-quality large language models (LLM), as well as optimizing game-specific AI models. CEO Kim is also reported to have sought new technologies and possibilities applicable to overall game development and operation in collaboration with OpenAI.
Earlier, KRAFTON announced CPC technology, co-developed with NVIDIA, at the world's largest IT exhibition 'CES 2025' held in Las Vegas, USA, this past January. Unlike traditional NPCs (non-player characters), CPCs are characters that can freely interact with users. Particularly, since they are characterized by recognizing situations and responding flexibly like humans, it is imperative to apply LLM technology using generative AI. KRAFTON is expected to implement CPC in its flagship intellectual property (IP) 'Battlegrounds' and the upcoming title 'Enjoy' through a business agreement with OpenAI and NVIDIA.
The industry anticipates that KRAFTON, which has invested considerable efforts in AI technology R&D, will secure higher technological capabilities through collaboration with global AI companies. In fact, KRAFTON has invested more than 100 billion won in AI core technology R&D and has published research papers on deep learning in various global conferences. Since 2023, it has launched an AI adoption initiative, achieving a company-wide AI adoption rate of 95%, and is utilizing ChatGPT in its AI.
In addition to AI, KRAFTON is increasing its investments in India. The company announced that it invested in Indian fintech company "Cashfree Payments" the previous day. This company provides solutions to support corporate payment acceptance, disbursements, external payments, and one-click payments, and this investment raised approximately $53 million (about 76 billion won). This collaboration is expected to foster innovative solutions in the gaming and digital market in India.
KRAFTON plans to invest further in the Indian market. So far, KRAFTON has invested $170 million (about 247 billion won) in India. The company has engaged in various investments, including esports companies, game streaming platforms, web novel platforms, audio content platforms, social platforms, and game development studios, and through this investment, it has also secured partners in the fintech sector.
Industry experts predict that the past structure of domestic game industry leaders '3N' (Nexon, NCSoft, Netmarble) may shift to a two-power structure of 'NK' (Nexon, KRAFTON). According to financial information provider FnGuide, KRAFTON's estimated fourth-quarter revenue for last year was 676.3 billion won, with an operating profit of 266.5 billion won. This reflects increases of 26.5% and 62.2%, respectively, compared to the previous year. The flagship IP 'Battlegrounds' is driving core revenue. KRAFTON plans to diversify its portfolio this year through various new titles such as 'Enjoy,' 'Project Ark,' and 'Subnautica 2'.
Lee Chang-young, a researcher at Yuanta Securities Korea, noted, "Due to the characteristics of battle games like Battlegrounds, fun elements can be infinitely created among users, leading to sustained growth in user IP loyalty. Stable performance growth and the potential for success of AI-integrated games are anticipated."