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Nvidia and Krafton have revealed revolutionary on-device AI that will enable smarter AI characters for PUBG and inZoi.
The companies built a Small Language Model (SLM) specifically designed for video games. This technology will first be introduced 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 is not tied to the cloud. For games, this language model will bring unprecedented levels of immersion into games, creating for the first time co-playable characters (CPC), which reinforce the traditional role of a non-playable character (NPC), a 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 achieve victory in a Battle Royale game. You can see in this 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 it matters
Krafton said CPCs can communicate naturally and verbally with players and each other, paving the way for immersive experiences never before possible. This technology represents a significant advancement in immersive gaming and redefines the role of AI in the future of entertainment.
How this comes to life specifically in the PUBG and inZOI franchise:
PUBG franchise: CPCs will introduce a new SLM-powered companion who can communicate verbally and team up with the player. Players can converse and strategize with their AI-powered CPC companion, just as they would with a human teammate, significantly enhancing gameplay.
inZOI: Players will experience a simulation in which they explore not only their character’s lives, but also everyone’s lives in a large-scale simulation, where citizens, known as “Zois”, interact and make choices based on their free will and real life experiences. time. Zois will follow fashion trends, spread rumors, build reputation and much more, thanks to SLM.
Importantly, this technology works 100% locally on a user’s device, without the need to communicate with a data center, improving data privacy, responsiveness and eliminating the need for subscription fees.
Description of the inZOI video game trailer
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In inZOI, each of the city’s 300 characters (called “Zois”) is driven by approximately 600 varying mental data points, forming the basis of the game’s realistic life simulation (RLS) experience. Although traditional systems Rule-based systems can produce varied results, they ultimately fail to effectively use a Zoi’s traits to generate context-appropriate behaviors.
To solve this problem, Krafton introduced “Smart Zoi” using its in-device language model, making Zois more dynamic by incorporating characteristics 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, a Zoi analyzes its experiences, shapes its actions for the next day, and fuels continued growth toward a truly unique and personalized character. This dynamic interaction fosters a dynamic and diverse city, filled with unexpected events that create a deeply immersive simulation experience.
“We wanted to build something really different from NPCs. Why is it called CPC? Because this is a character you can actually build yourself. The first example is PUBG CPC,” Lee said.
In PUBG, you can play as a duo, competing against other human players to be the sole survivors in a PUBG match.
“It’s based on the whole language model, the text model, the text-to-speech model, all together are able to think about what they need to actually be able to hear,” Lee said. “There are so many things you can do. For example, you can have strategic descriptions. Hey, I want to play in a different way. Each action sequence is carried out by 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 inferences, etc.
Krafton has a team of around 80 people working to develop technology for AI characters. It’s a bit crude in some ways, but the character essentially behaves like a human player. Players will be able to use technology and create their own characters.
“Of course, they’re not 100% natural humans yet, but this is the first AI character whose responses you’ll hear in 1.5 seconds,” Lee said.
Lee said he is optimistic about AI in games.
“I’m pretty sure AI is going to change almost everything we’ve been doing for years,” he said. “For the gaming industry and gamers, I am extremely optimistic about this. I see 2025 as the most important year in the world of AI, and I would say that InZOI is going to be a crucial milestone in the world of gaming.”
InZOI, the life simulation game, will launch in March. Lee said Krafton also uses AI tools to accelerate the pace of its creation.
Lee previously thought that intelligent NPCs would appear in games in 2024. But it looks like 2025 will be the big year for that.
“Some AI models are perfect. Every time they make a small mistake, even with a one in a million chance, someone will get hurt. But for AI for video games, our species will not be in danger. When these characters make mistakes, it’s funny,” Lee said. “They sometimes make stupid jokes and say random things. But they are fun.