AI in Gaming: Kinetix Launches Fund for User Content as Cloud Deal is Inked

From boosting cloud gaming performance to enabling player-created content and lifelike characters, artificial intelligence (AI) opens up fresh possibilities for developers and gamers alike.

A new partnership between two UAE-based technology firms seeks to address computing power shortages in the gaming industry.

Hyperfusion, which bills itself as the largest AI computing provider in the Gulf Cooperation Council (GCC), has announced a deal with The Game Company to provide GPU resources for cloud gaming. The collaboration comes as gaming companies grapple with limited access to high-performance graphics processors worldwide.

“With this partnership, we are breaking new ground in gaming,” said Bilal Asghar, CSO of The Game Company, in a Thursday (Sept. 12) news release. “Hyperfusion’s powerful GPU capabilities are helping us deliver an unparalleled gaming experience. This collaboration comes at a pivotal time as we prepare to launch our platform in the GCC, pushing the boundaries of performance and accessibility for gamers everywhere.”

The Game Company plans to use Hyperfusion’s Nvidia GPUs to power its cloud gaming platform, which it claims will allow users to play resource-intensive games across various devices. The service is set to launch in GCC countries, though specific timelines were not disclosed.

Gaming may get more personal, thanks to a $1 million fund launched by Kinetix to supercharge AI-driven user-generated content (UGC) in video games. The company’s Embeddable AI Emote Creator is turning players into content creators, allowing them to generate custom 3D animations from videos inside their favorite games.

The fund offers up to $75,000 per selected developer to integrate Kinetix’s technology, potentially transforming everything from player interactions to entire virtual worlds. As gamers increasingly demand personalization and creative freedom, this AI-powered approach could unlock content creation at minimal cost.

San Francisco-based Campfire has reportedly secured $3.95 million in seed funding for its AI game engine, Sprites, amid growing interest in AI-driven interactive entertainment. The startup, founded in 2021 by Siamak Freydoonnejad and Sina Zargaran, aims to create AI characters with simulated emotions and memories for use in games and apps.

Campfire’s first title, Cozy Friends, has launched on Steam and iOS as a showcase for AI technology. The life simulation game, which VentureBeat reports has garnered a 20,000-person waitlist, allows players to interact with AI-powered characters in a virtual world.

The funding round, led by Y Combinator and FundersClub, comes as numerous startups vie for dominance in the emerging AI gaming sector.

The release of China’s highly anticipated “Black Myth: Wukong” game has reignited discussions about artificial intelligence’s expanding role in the gaming industry. This AAA title showcases advanced AI applications, prompting industry experts to reassess the technology’s potential impact.

According to Digitimes, gaming companies have leveraged AI for various purposes, including creating non-player characters (NPCs), building virtual societies and analyzing player sentiment. Chinese firms are reportedly at the forefront of these efforts, integrating AI into game development and community management.

However, industry insiders caution that large-scale AI implementation requires careful consideration, especially for companies with massive user bases. Digitimes cited Moonton Games, a Shanghai-based developer with an estimated 100 million monthly active users, as an example. The company is working with AWS to explore AI applications in sentiment analysis, content moderation and marketing localization.

While AI’s current applications in gaming range from asset generation to improving internal processes, the technology’s long-term impact remains uncertain. Some developers are experimenting with AI-driven virtual societies, while others focus on enhancing existing game elements. As the technology continues to develop, game creators must use the tools they have in a responsible way.

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