Game publishers Electronic Arts and Krafton commit future to AI tech

Markets 2025-10-27 11:57

Gaming industry giants Electronic Arts (EA) and Krafton are betting big on generative artificial intelligence (AI) as they prioritize creative empowerment using the technology. Both firms have announced endeavors towards fostering the inclusion of the technology in their operations.

Electronic Arts announced a strategic partnership with Stability AI. According to its statement, both firms will work on co-developing generative AI models, tools, and workflows that will transform game creation.

Electronic Arts is currently one of the biggest third-party game publishers, driving popular franchises like EA Sports FC, Battlefield, and Madden NFL. On the other hand, Stability AI is best known for its popular Stable Diffusion model.

Electronic Arts and Krafton are embracing AI technology

In the statement, Stability AI mentioned that the partnership will focus on practical applications that will be used to improve creative workflows. Some of the projects that would be undertaken include the creation of physically based rendering (PBR) materials through artist-driven workflows, such as generating 2D textures with precise colors and light accuracy.

The firms are also developing AI systems that will be used to pre-visualize entire 3D environments from prompts.

The partnership will also look to enable rapid prototyping and visual storytelling, while allowing artists to maintain their creative control and quality standards. “Creativity has always been at the heart of everything our teams do,” said Electronic Arts VP of Creative Innovation Kallol Mitra, in a statement. “Together with Stability AI, we’re amplifying that creativity. Giving artists, designers, and developers the power to dream bigger and build more.”

Electronic Arts’ announcement comes weeks after the firm released a statement saying it had agreed to be acquired by the Public Investment Fund of Saudi Arabia, Silver Lake, and Affinity Partners in a $55 billion deal. The planned sale faced criticism from several angles of the gaming community, as gamers and industry analysts criticized the amount of potential debt Electronic Arts would be saddled with. Senators also voiced out their criticisms over the potential for foreign influence and national security risks.

Krafton set to finalize its AI push in 2026

Krafton, on the other hand, announced a comprehensive transformation into an AI-first company. According to the PUBG and Subnautica publisher, the company wants to center its operations around agentic AI to automate workflows and enable employees to focus on creative activities and solve complex problems. The company is also making several investments in line with this, including spending $70 billion for GPU cluster infrastructure to support sophisticated reasoning and iterative planning tasks.

In addition, Krafton is expected to allocate nearly $21 billion annually starting in 2026 for employee AI tool utilization, a support level that is more than 10 times its current level. The transformation is expected to happen in three stages, which include establishing an AI-first culture through learning platforms and a hackathon, innovating work methods by restructuring organizational management, and providing new growth opportunities through expanded employee mobility and role expansion.

“We will leap forward as a company that promotes the growth of members and expands the organization’s areas of challenge through AI,” said Krafton CEO Kim Chang-han, in a statement.

Krafton aims to finalize its AI platform and data integration foundation by the second half of next year, establishing a company-wide AI operation infrastructure in an attempt to strengthen its competitive position in the global gaming market. Krafton and Electronic Arts join other game publishers that have embraced the use of AI.

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