Krafton and Nvidia are working together to develop smarter AI characters for PUBG and inZOI

Nvidia And Krafton introduced groundbreaking on-device AI that will enable smarter AI characters for PUBG and inZoi.

The companies have developed a Small Language Model (SLM) specifically for video games. This technology will be introduced for the first time in the PUBG franchise, which has sold more than 80 million copies, and in the upcoming life simulator inZOI.

The AI language model is on-device, meaning it remains on your local computer and is not connected to the cloud. For games, this language model will enable an unprecedented level of immersion in games and create co-playable characters (CPC) for the first time, reinforcing the traditional role of a non-playable character (NPC), said Kang-Wook Lee, head of Krafton’s deep learning division, in an interview with GamesBeat during CES 2025.

In a video, Krafton showed how an NPC can help guide a human player to victory in a battle royale game. In the video embedded in this story, you can see how the NPC can dance and chat with the player and help with tactics as the pair hopes to win a chicken dinner against other people. Lee believes this innovation can help PUBG expand its audience considering the game is eight years old.

Why this is important

According to Krafton, CPCs can communicate naturally and verbally with players and each other, enabling immersive experiences never before possible. This technology represents a significant leap in immersive gaming and redefines the role of AI in the future of entertainment.

How this specifically comes to life in the PUBG franchise and inZOI:

PUBG franchise: CPCs will introduce a new SLM-powered companion that can verbally communicate and team up with the player. Players can converse and strategize with their AI-powered CPC companion like they would with a human teammate, greatly improving gameplay.

inZOI: Players will experience a simulation where they will explore not only their character’s life, but the lives of everyone else in a large-scale simulation where citizens, known as “Zois”, interact and make decisions based on their free will and of their life experiences in reality meet time. Zois will follow fashion trends, spread rumors, build reputation and more, supported by the SLM.

Crucially, this technology runs 100% locally on a user’s device without the need to communicate with a data center, improving data protection and responsiveness and eliminating the need for subscription fees.

inZOI video game trailer description

In inZOI, each of the 300 characters (called “Zois”) in the city is controlled by approximately 600 different mental data points, which form the basis of the game’s realistic life simulation experience (RLS). While traditional rule-based systems can produce different results, they are ultimately unable to effectively use a Zoi’s characteristics to produce context-appropriate behavior.

To address this issue, Krafton introduced “Smart Zoi” using its on-device language model, which makes Zois more dynamic by incorporating characteristics such as age, personality, and current situations. This allows them to not only perform calculated tasks, but also adapt their behavior to unexpected scenarios, much like real people.

At the end of each day, a Zoi analyzes their experiences, shapes their actions for the next day, and encourages continued development into a truly unique and personalized character. This dynamic interplay fosters a vibrant, diverse city full of unexpected events that create a deeply immersive simulation experience.

“We wanted to build something that was really different from NPCs. Why do we call this CPC? Because it’s a character that you can actually build yourself. The first example is PUBG CPC,” Lee said.

In PUBG, you can compete against other human players as a duo and compete as the sole survivor of a PUBG game.

“It is based on the entire language model, the text model and the text-to-speech model. Everyone together is basically able to think about what they actually need to be able to hear,” Lee said. “There are so many things you can do. For example, you can create some strategic descriptions. Hey, I want to play differently. Each action sequence is created through language model inference. At the end of the day you can think about what the next day will be like. Planning is also done through language model inference and so on.”

Krafton has a team of about 80 people working on developing the technology for the AI characters. It’s a little rough in some ways, but the character essentially behaves like a human player. Players can use the technology and create their own characters.

“Of course they’re not 100% natural humans yet, but this is the first AI character where you can hear the answers within 1.5 seconds,” Lee said.

Lee said he is an optimist about AI in games.

“I’m pretty sure AI will change almost everything we’ve been doing for years,” he said. “I am extremely optimistic for the gaming industry and gamers. I see 2025 as the biggest year in the AI world and I would say InZOI will be a crucial milestone in gaming.”

InZOI, the life simulation game, will be released in March. Lee said Krafton is also using AI tools to speed up the pace of work.

Lee previously thought that intelligent NPCs would appear in games in 2024. But it looks like 2025 will be the big year for this.

“Some of the AI models are perfect. Every time they make a small mistake, even if the odds are one in a million, someone will get hurt. But for AI for games, our species is not at risk. When these characters make mistakes, it’s funny,” Lee said. “They sometimes make some stupid jokes and say random things. But they’re fun.”