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Krafton has entered the defense sector by signing an investment agreement with Hanwha Aerospace, committing up to $1 billion to develop and commercialize technology in various sectors, particularly in physical AI. This initiative aligns with Krafton's goal to become an AI-first company by 2025, supported by a $70 million GPU cluster investment. The partnership combines Krafton's large-scale game data experience with Hanwha's aerospace technologies, including artillery and precision-guided munitions, aiming to enhance the physical AI ecosystem and strengthen technological competitiveness.