Krafton and Nvidia team up to create smarter AI characters for PUBG and inZOI
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Nvidia and Crafton unveiled ground-breaking AI on the device that will enable smarter AI characters for PUBG and inZoi.
Companies have built a small language model (SLM) designed specifically for video games. This technology will be introduced first 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 stays on your local computer and isn’t connected to the cloud. For games, this language model will bring unprecedented levels of immersion to games, creating for the first time co-playable characters (CPCs) that enhance the traditional role of non-playable characters (NPCs), 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 a human player win a Battle Royale game. You can see in this video embedded in this story how the NPC can dance and chat with the player and help them with tactics as the couple hopes to win a chicken dinner against other people. Lee thinks this innovation is the kind of thing that could help PUBG expand its audience considering the game is eight years old.
Why this matters

Krafton said CPCs can communicate naturally and verbally with players and each other, unlocking 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 comes to life specifically 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 chat and strategize with their AI-powered CPC companion just as they would with a human teammate, greatly enhancing gameplay.
inZOI: Players will experience a simulation where they explore not only their character’s life, but everyone’s life in a full-scale simulation where citizens known as “Zoice” interact and make choices based on their free will and real life experiences time time Zois will follow fashion trends, spread rumors, develop reputation and more powered by SLM.
Critically, this technology runs 100% locally on the user’s device without the need to communicate with a data center, improving data privacy, 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 are controlled by approximately 600 different mental data points, forming the basis of the game’s Realistic Life Simulation (RLS) experience. While traditional rule-based systems can produce different results, they ultimately fail to effectively use Zoi’s traits to generate context-appropriate behavior.
To address this, Krafton introduced “Smart Zoi”, using its device language model, making Zois more dynamic by incorporating traits such as age, personality and current situations. This allows them not only to perform calculated tasks, but also to adapt their behavior when faced with unexpected scenarios, just like real human beings.
At the end of each day, Zoi analyzes her experiences, shaping her actions for the next day and fueling continued growth into a truly unique and personalized character. This dynamic interaction fosters a vibrantly diverse city filled with unexpected events that create a deeply immersive simulation experience.
“We wanted to build something that was really different from NPC. Why do we call this CPC? Because it’s a character you can actually build yourself. The first example is PUBG CPC,” Lee said.
In PUBG, you can play in a duo, competing against other human players to be the sole survivor in a PUBG match.
“It’s based on the whole language model, text model, text-to-speech model, all together can think about what they need to be able to actually hear,” Lee said. “There are so many things you can do. For example, you can have some strategic descriptions. Hey, I want to play differently. Each sequence of actions is done by inferring a language model. At the end of the day, you can think about what the next day will be like. Planning is also done through language model inferences 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 will be able to use the technology and create their own characters.
“Of course, they’re still not 100% natural humans, but this is the first AI character where you’ll hear the answers within 1.5 seconds,” Lee said.
Lee said he is optimistic about AI in games.
“I’m almost certain that AI will change almost everything we’ve been doing for years,” he said. “For the gaming industry and gamers, I am extremely optimistic. I see 2025 as the biggest year in the world of AI and I would say that InZOI will be an important milestone in gaming.”
InZOI, the life simulation game, launched in March. Lee said Krafton also uses AI tools to accelerate the pace at which it creates.
In the past, Lee thought that smart NPCs would appear in games in 2024. But it seems that 2025 it’s going to be a big year for that.
“Some of the AI models are perfect. Whenever they make a small mistake, even with a one in a million chance, someone will get hurt. But for gaming AI, our species will not be at risk. When these characters make mistakes, it’s funny,” Lee said. “Sometimes they make stupid jokes and say random things. But they are fun.