KRAFTON has announced a strategic alliance with Hanwha Aerospace to jointly develop physical AI technologies across multiple sectors, including defense. The collaboration was confirmed through the signing of a Memorandum of Understanding (MOU) between the two companies.
The partnership aims to combine KRAFTON’s expertise in AI research and software development with Hanwha Group’s strong industrial capabilities in defense and manufacturing. Through this alliance, both companies plan to accelerate the development and commercialization of next-generation physical AI solutions.
KRAFTON and Hanwha Aerospace Sign MOU for Physical AI Development
As part of the agreement, KRAFTON and Hanwha Aerospace will work together on long-term co-development of physical AI technology. The partnership also sets the foundation for establishing a Joint Venture (JV) to further advance research outcomes and commercial applications.
KRAFTON’s experience in operating large-scale game data and physics-based virtual environments will play a crucial role in training and verifying physical AI systems. By using simulation environments similar to those found in advanced games, the company aims to test and validate real-world applications of AI technologies.
The alliance will focus on three main areas:
- Joint research and development of core physical AI technologies
- Testing real-world implementation scenarios for AI systems
- Building technical and operational frameworks for deployment
These efforts are expected to support the transition of physical AI from simulation-based environments to real-world industrial and defense applications.
Joint Venture and $1 Billion AI Investment Fund
As part of the broader collaboration, KRAFTON plans to establish a joint venture with Hanwha Group to accelerate the commercialization of physical AI solutions. The JV will work to turn research outcomes into practical technologies for industries including robotics and defense.
In addition, KRAFTON will invest in a global AI, robotics, and defense investment fund created by Hanwha Asset Management. The fund is targeting a total size of USD 1 billion and aims to identify and support high-growth companies across the AI and robotics value chain.
“KRAFTON will accelerate the development of physical innovation by combining the company’s AI technology and software expertise with Hanwha’s industrial strengths,” said KRAFTON CEO CH Kim. “As our JV with Hanwha evolves to materialize co-development outcomes, we expect it to emerge as a global defense technology company like Anduril.”
Meanwhile, Hanwha Aerospace President and CEO Jae-il Son highlighted that AI technologies are rapidly expanding into new industries, including defense, and that the collaboration with KRAFTON could help set new standards for physical AI development.
Read More: S8UL Signs Pokémon GO World Champion Ved ‘Beelzeboy’ Bamb
KRAFTON Expanding Research in Robotics and AI
The partnership aligns with KRAFTON’s broader push into robotics and AI research. The company recently launched Ludo Robotics, a research entity based in the United States with operations in Korea, led by KRAFTON’s Chief AI Officer Kangwook Lee.
Through Ludo Robotics and the upcoming joint venture with Hanwha Group, KRAFTON aims to explore new opportunities in physical AI, robotics, and real-world automation technologies. The company believes its expertise in simulation environments and large-scale game data can help accelerate the development of advanced AI systems capable of operating in real-world environments.
