If you’re a generalist VC looking into the gaming space, here’s what you need to know about the AlxGaming crossover
Gaming is essentially a content creation business, so the benefits of Generative Al are obvious on that front.
►► But Al isn’t only leveraged for faster content creation.
Al is also being deployed for:
Streamlined production and development
– Release and publishing tools
Cloud-based serverless hosting
– Community management and live operations.
Al is reorganizing the ENTIRE gaming value chain through new business models.
I do expect some sort of consolidation in the coming 5-10 years, but for now, the challenge remains to spot the real OGs that will scale their models and compete with today’s giants.
I recently shared a post with some Al-native gaming startups moving the needle in the space. Tagging them here once again in case you missed it
Pragma: Building plug-and-play solutions for game backends
Hathora: Provides serverless hosting for multiplayer games
HYPOTHETIC: Al-based art and asset creation for games
Luma Al: Al-powered 3D object and model generation
Move Al: Accelerating motion capture and animation
Latent Technology: Working on animation and rigging
Inworld Al: Developing character engines for AI NPCs
Blockade Labs: Created Skybox Al for panoramic
scene creation
Common Sense Machines: Developing Al copiloting developer toolkits
Rosebud Al: Al-powered developer tools
Agentic: Al-powered game testing tools
Hidden Door: Creating Al-based story-driven games
Storycraft: Developing Al-powered narrative games
GGWP: Providing Al solutions for online toxicity and cheating
Modulate: Al tools for improving online gaming experiences.
