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Nvidia and Krafton unveiled a groundbreaking on-device AI that will enable smarter AI characters for PUBG and inZoi.
The companies have built a Small Language Model (SLM) built specifically for video games. This technology will first be introduced in the PUBG franchise, which has sold more than 80 million copies, and the upcoming life simulator, inZOI.
The AI language model is on device, meaning it stays on your local computer and isn’t linked to the cloud. For gaming, this language model will bring unprecedented levels of immersion in games, creating for the first time Co-Playable Characters (CPC), that enhance 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 carry a human player to victory in a game of battle royale. You can see in that video embedded in this story how the NPC can dance and converse with the player, and help with tactics as the pair hope to win a chicken dinner against other humans. Lee thinks this innovation is the kind of thing that can help PUBG grow its audience, considering the game is eight years old.
Why This Matters
Krafton said CPCs can communicate naturally and verbally with players and with 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 communicate verbally and team up with the player. Players can converse and strategize with their AI powered CPC companion just like they would a human teammate, greatly enhancing gameplay.
inZOI: Players will experience a simulation where they explore not just their character’s life, but the lives of everyone in a full-scale simulation, where citizens, known as “Zois,” interact and make choices based on their free will and life experiences in real time. Zois will follow fashion trends, spread rumors, develop reputations and more, powered by the SLM.
Critically, this technology runs 100% locally on a user’s device, with no 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 is driven by approximately 600 varying mental data points, forming the foundation of the game’s Realistic Life Simulation (RLS) experience. While traditional rule-based systems can produce varied outcomes, they ultimately fall short in effectively utilizing a Zoi’s traits to generate context-appropriate behaviors.
To address this, Krafton introduced ‘Smart Zoi’ using its on-device language model, making Zois more dynamic by incorporating traits like age, personality, and current situations. This enables them to not only perform calculated tasks but also adapt their behavior when faced with unexpected scenarios, much like real human beings.
At the end of each day, a Zoi analyzes their experiences, shaping their actions for the next day and fueling continuous growth into a truly unique and personalized character. This dynamic interplay fosters a vibrantly diverse city, filled with unexpected events that create a deeply immersive simulation experience.
“We wanted to build something that is really different from NPCs. Why do we call this CPC? Because it’s a character that you can actually build on your own. The first example is PUBG CPC,” Lee said.
In PUBG, you can play with in a duo, competing against other human players to be the sole survivors of a PUBG match.
“It is based on the whole language model, text model, text-to-speech model, all together basically is able to think about what they have to be able to actually hear,” Lee said. “There are so many things you can do. For instance, you can have some strategic descriptions. Hey, I want to play in a different way. Every action sequence is made by language model inference. At the end of the day, you can reflect on what the next day will be like. Planning is also done by language model inferences and so forth.”
Krafton has a team of about 80 people working on developing the technology for the AI characters. It’s a little crude in some ways, but the character essentially behaves like a human player. Players will be able to take the tech and create their on characters.
“Of course, they are not 100% natural humans yet, but this is the first AI character where you will hear the responses within 1.5 seconds,” said Lee.
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. “For the gaming industry and gamers, I’m extremely optimistic about it. I see 2025 as the biggest year of the AI world, and I would say InZOI is going to be a critical milestone in gaming.”
InZOI, the life simulaiton game, is launching in March. Lee said Krafton is also using AI tools to speed up the pace at which it creates.
Lee thought in the past that smart NPCs would show up in games in 2024. But it looks like 2025 is going to be the big year for that.
“Some of the AI models are perfect. Whenever they make a small mistake, even with one in million chance, someone will be hurt. But for AI for gaming, our species will not be at risk. When these characters make mistakes, it’s funny,” Lee said. “They make some stupid jokes sometimes and they say random things. But they’re fun.”
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