Krafton signs strategic alliance with Hanwha Aerospace to develop real-world AI systems

• The alliance combines game engine intelligence with real-world industrial systems
• A joint venture is planned to turn AI research into commercial defence applications
• The company is positioning itself closer to defence tech players like Anduril

Krafton has signed a strategic alliance with Hanwha Aerospace with the aim to develop and commercialise physical AI technologies.

The agreement, formalised through a memorandum of understanding (MoU), will see the two companies collaborate on research and development, and real-world application testing. 

Moreover, it includes the creation of technical and operational systems, with plans to establish a joint venture to bring products to market.

The partnership will also extend into investment. Krafton plans to participate in a $1 billion fund led by Hanwha Asset Management focused on AI, robotics and defence, targeting companies across the broader value chain.

AI-driven growth 

The move builds on Krafton’s wider AI ambitions, including its US-based robotics unit Ludo Robotics, which is focused on advancing long term research and real-world deployment.

“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 materialise co-development outcomes, we expect it to emerge as a global defence technology company like Anduril.”

Hanwha Aerospace president and CEO Jae-il Son commented: “AI technology is rapidly growing beyond industries, with new physical AI applications in the defence sector. Our partnership with Krafton will offer a new paradigm standard in areas of physical AI and future defence."