Krafton is establishing a strategic alliance with Hanwha Aerospace in the physical AI sector, pursuing joint technology development and commercialization across various fields including defense. (★See pages 1 and 14 of this paper's Jan. 13 edition)
The two companies signed a memorandum of understanding on Jan. 13 for joint development of physical AI technology and establishment of a joint venture. The partnership combines Krafton's AI research capabilities and software development expertise with Hanwha Group's industrial infrastructure in defense and manufacturing.
Krafton's accumulated data operation experience and virtual environment-based simulation technology will serve as core resources for advancing physical AI learning and verification processes. Building on this foundation, the companies plan to enhance the completeness of physical AI technology operating in real-world environments and pursue phased demonstrations for field application.
Under the agreement, both companies will pursue phased initiatives including joint R&D of core physical AI technology, review of demonstration and application scenarios, and establishment of technology and operational systems. They also plan to establish a joint venture to quickly connect joint development outcomes to field application and commercialization while strengthening their mid-to-long-term cooperation framework.
Additionally, Krafton will participate as an investor in a fund organized by Hanwha Asset Management. The fund focuses on investments in AI, robotics, and defense sectors with a target size of $1 billion. Through investments in promising technologies and companies, the initiative aims to expand the physical AI ecosystem and strengthen technological competitiveness. The fund will also serve as a platform to discover high-growth-potential partners across the core value chain and connect them to joint development and commercialization.
"We will accelerate the development of technology that operates in real-world environments by combining Krafton's AI technology and software operation capabilities with Hanwha's field-based expertise," said Kim Chang-han, CEO of Krafton. "Going forward, we will establish a JV with Hanwha to connect joint development outcomes to commercialization and grow the JV into a 'global defense technology company like Anduril.'"
"AI technology is rapidly growing into physical AI that is utilized in the defense sector beyond industry," said Son Jae-il, CEO of Hanwha Aerospace. "Through cooperation with Krafton, we will establish new technology paradigm standards in physical AI and future defense sectors."
Meanwhile, Krafton has been continuously pursuing physical AI research as a mid-to-long-term new business area based on its AI foundational technology capabilities and strengths accumulated in the gaming industry. Following the establishment of robotics research corporation Ludo Robotics in the United States last year, the company also established a Korean entity in February this year. Krafton plans to expand related synergies with two pillars: robotics research through Ludo Robotics and JV-based demonstration and commercialization pursued with Hanwha Group.
