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Nvidia and Krafton unveiled groundbreaking on-device AI that powers smarter AI characters in PUBG and inZoi.
The two companies built a Small Language Model (SLM) specifically built for video games. The technology will first be introduced in the PUBG franchise, which has sold over 80 million units, and the upcoming life simulator inZOI.
The AI language model resides on the device. This means it stays on your local computer and is not connected to the cloud. For games, this language model will bring unprecedented levels of immersion to games and create the first co-playable characters (CPCs) that enhance the traditional role of non-playable characters (NPCs), CEO Kang-wook Lee said. . Employees of Krafton’s deep learning division in an interview with GamesBeat at CES 2025.
In the video, Krafton showed how NPCs can help guide human players to victory in battle royale games. In the video included with this story, you can see how the NPC can dance and talk to the player, helping with tactics as the two hope to win the chicken dinner against other humans. Lee believes this innovation could help PUBG grow its audience, considering the game is eight years old.
Why This Matters
Krafton said CPC allows players to communicate naturally and verbally with each other, creating immersive experiences that weren’t possible before. This technology represents a groundbreaking leap forward in immersive gaming and redefines the role of AI in the future of entertainment.
How this is implemented specifically in the PUBG franchise and inZOI:
PUBG Franchise: CPC introduces a new SLM-based companion that allows you to verbally communicate with players and form teams. Players can chat and strategize with their AI-based CPC companions just like their human teammates, greatly enhancing their gameplay.
inZOI: Players will experience a simulation that explores not only their character’s life, but the lives of everyone, a full-fledged experience where citizens known as Zois actually interact and make choices based on their own free will and life experiences. You will experience a simulation. hour. Through SLM, Zois will follow fashion trends, spread the word, build a reputation, and more.
Importantly, the technology runs 100% locally on the user’s device, improving data privacy and responsiveness without the need to communicate with a data center, and requires no subscription fees.
inZOI Video Game Trailer Explained
In inZOI, each of the city’s 300 characters (called ‘Zois’) are driven by around 600 different mental data points, forming the basis of the game’s Realistic Life Simulation (RLS) experience. Traditional rule-based systems can produce a variety of outcomes, but ultimately fall short of effectively leveraging Zoi’s properties to generate context-sensitive behavior.
To solve this problem, Krafton introduced ‘Smart Zoi’ using an on-device language model and made Zoi more dynamic by incorporating characteristics such as age, personality, and current situation. This allows them to not only perform calculated actions, but also adjust their behavior when faced with unexpected scenarios, just like real humans.
At the end of each day, Zoi analyzes her experiences to shape her actions for the next day and foster continued growth into a truly unique and personalized character. This dynamic interaction creates a vibrant and diverse city filled with unexpected events that create an immersive simulation experience.
“We wanted to create something really different from NPCs. Why is it called CPC? This is because it is a character that you can actually create on your own. The first example is PUBG CPC,” Lee said.
In PUBG, you can play as a duo and compete against other players to become the sole survivor of a PUBG match.
“It’s based on a full language model, a text model, a text-to-speech model, and you can basically think about what you should actually be able to hear,” Lee said. “There is so much you can do. There may be several strategic explanations, e.g. Hello, I want to play in a different way. All action sequences are 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, etc.”
Krafton has a team of approximately 80 people to develop AI character technology. Although a bit clunky in some ways, the characters essentially behave like human players. Players can utilize their skills to create their characters.
CEO Lee said, “Of course, he is not a 100% natural person yet, but this is the first AI character that can respond within 1.5 seconds.”
Lee said he is an optimist about AI in games.
“I am convinced that AI will change almost everything we have done for many years,” he said. “For the gaming industry and gamers, I’m very optimistic about this. I see 2025 as the biggest year for the AI world and I would say InZOI will be a major milestone in gaming.”
Life simulation game InZOI will be released in March. Lee said Krafton is using AI tools to speed up production.
Lee previously thought that smart NPCs would appear in games by 2024. However, 2025 is expected to be an important year in that respect.
“Some AI models are perfect. Every time you make a small mistake, even if there is a one in a million chance, someone will get hurt. But when it comes to gaming AI, our species will not be at risk. “It’s fun when these characters make mistakes,” Lee said. “They sometimes tell stupid jokes and say outrageous things. But it’s fun.”
