Weekly News Digest #42

General Intuition Raises $133.7m Seed Round to Build a Frontier Research Lab for the Gaming Industry

US-based AI gaming company General Intuition has raised $133.7m in a Seed round, marking one of the largest early-stage investments in the AI gaming sector and surpassing the $101m funding round of Stability AI in 2022. The round was led by Khosla Ventures and General Catalyst, with participation from The Raine Group. The proceeds will be used to build an AI research lab focused on gaming agents and world models.

General Intuition builds on the strength of Medal, the world’s largest platform for sharing gameplay moments, which has raised $73m across three funding rounds with a total valuation of $333m. Medal’s 10 million MAU capture and share over 2 billion gameplay clips annually, providing training data for AI model development.

The company is building AI agents capable of playing video games at a human level, positioning gaming as a training ground for general-purpose agents that can operate in simulated and eventually physical environments. Its near-term commercial focus includes AI-powered NPCs and interactive simulation tools, with deployment targeted for H1’26.

Using this dataset, the company is developing AI models focused on spatial and temporal reasoning within game environments. Its research spans:

• AI agents for spatial and temporal reasoning in games;
• World models that simulate interactive game environments;
• Video understanding systems with applications beyond gaming.

General Intuition operates as a public-benefit corporation and has stated it will not develop tools designed to replace game developers, designers, or artists. The company’s focus includes AI-powered NPCs and interactive simulation environments for existing games.

Founded by the team behind Medal, the company includes researchers who contributed to published works on world modeling (DIAMOND, Δ-IRIS, IRIS) and veterans from Epic Games, Palantir, and Wayve. The company is hiring across AI research, reinforcement learning, and infrastructure engineering, with offices in New York City and Geneva. Earlier in 2025, reports emerged that OpenAI expressed interest in acquiring Medal for approximately $500m, though no transaction materialized. The implied valuation would represent a ~1.5x markup on Medal’s last reported $333m valuation.

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MERGERS & ACQUISITIONS

India-based automotive software specialist KPIT Technologies (NSE: KPITTECH) has acquired a 90% stake in Switzerland-based in-car gaming platform developer N-Dream for an undisclosed sum. The acquisition aims to strengthen KPIT’s position in the software-defined vehicle sector and advance N-Dream’s mission to enhance in-car digital experiences. N-Dream will continue to operate independently under its existing leadership. The company develops cloud-based AirConsole — in-car gaming and digital entertainment platforms that allow passengers to play games on vehicle infotainment systems using their smartphones as controllers.

VENTURE FINANCING

India-based digital entertainment startup Rusk Media has raised $12.3m (₹103 crore) in a Series B round led by IvyCap Ventures, with participation from LC Nueva, InfoEdge Ventures, Woori Venture Partners, and several family office investors. The proceeds will be used to develop new IPs, expand content formats internationally, enhance its production technology stack, and grow its distribution network. Rusk Media operates across UGC gaming platforms, branded games, and interactive ads. The company previously raised $9.5m in a Series A round in Aug’22.

US-based AI gaming technology company Ego AI has raised $6.7m in a Seed funding round from Patron, Y Combinator, Accel, Boost VC, and angel investors. The proceeds will be used to train its proprietary AI model and expand its research and engineering teams. Ego AI is developing a platform for NPC creation and is currently working on two projects: character.world, an AI-powered engine that generates human-like in-game character behavior, and the open-source Character Context Protocol, which enables AI characters to retain their personalities and memories across different environments.

US-based no-code gaming platform VLGE has secured $5m in a funding round led by L’Oreal Group and angel investors. The funding will support VLGE’s initiatives, including World Fashion Week, a virtual experience on the platform where over 50 brands launch shoppable interactive worlds. VLGE is developing an immersive-world-building platform that enables brands to create interactive worlds filled with content and games that can be exported to popular platforms like Roblox.

India-based AI mobile games developer Airoclip has secured $2.75m in a Seed funding round co-led by T-Accelerate Capital, Centre Court Capital, and BITKRAFT Ventures. The investment will support the company’s proprietary game personalization technology and the expansion of its development, design, data, and marketing teams. Airoclip develops mobile puzzle titles using AI-driven personalization and content-generation tools. The studio has already released Tap Hexa and Hexa Dreams, which have surpassed 300,000 installs combined.

Netherlands-based PC & Console game development studio Galaxy Grove has raised $1m in equity investment from ForsVC and 1Up Ventures. The funding will be used to expand the team and initiate pre-production on two new management games. Galaxy Grove, founded by former Ronimo Games co-founder Joost van Dongen, develops 3D management and building games. The studio has released two titles: the debut title Station to Station and Town to City, which is currently in Early Access on Steam.

Turkey-based mobile game studio Pax Animi Games has secured $250k from Entertech VC. The investment will support the studio’s global expansion, scaling of existing mobile titles, and enhancement of its proprietary technology tools, Helmet SDK and Helmet Analytics. Founded in 2020, Pax Animi develops mobile and web-based games, Money to Billions and Pure Farm, along with its proprietary tools Helmet SDK and Helmet Analytics. The company previously raised funding in 2021 at a valuation of $700k.

US-based web3 gaming platform Mythical Games has secured an undisclosed investment from Eightco Holdings (NASDAQ: ORBS) as part of its Series D financing round, with participation from ARK Invest and the World Foundation. The deal will support the integration of Eightco’s identity-verification infrastructure into Mythical’s ecosystem. Mythical Games develops a web3 gaming ecosystem and has raised a total of $262m since 2020, including its most recent $37m Series C round in Jul’23.

PUBLIC OFFERINGS

Canada-based esports and digital media company OverActive Media (TSXV: OAM) has announced intentions to issue a $710k (CAD 1m) secured promissory note from an entity controlled by the Chairman of the Company’s board, Sheldon Pollack. The debt financing carries a six-month term with a 12% annual interest rate, secured against certain accounts receivable, and includes 330,000 common share purchase warrants at an exercise price of $0.21 (CAD 0.30). Proceeds will provide working capital and support the scale-up of OverActive’s platform, ActiveVoices, which focuses on content localization and distribution for creators and brands.

FUNDRAISING

UK-based esports organization Esports Global has launched a $50m investment fund backed by the Kuwait-based Alshaya Group. The fund plans to invest in 10-15 companies in the esports and video games industry at the Early-stage and Series B levels. In addition, the fund will target companies in education, technology, and sports that can be adapted to meet the needs of the esports ecosystem.

France-based UGC games developer and publisher RIVRS has launched a $1m Creator Fund to support UGC developers and studios in Asia. In addition, the company has opened a new in-house development studio in Vietnam and established a regional publishing headquarters in Hong Kong. RIVRS develops UGC titles for Minecraft, Fortnite, and Roblox, and previously raised $4.4m in Oct’24.

US-based web3 game developer Hytopia has expanded its HYTOPIA Creator Fund from $125k to $250k. The fund offers up to $25k per developer, along with engineering and marketing support, and is designed to strengthen Hytopia’s creator ecosystem.