Weekly News Digest #21

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Decart Raises $300m Series B at ~$4B Valuation

Israel-based AI infrastructure company Decart has raised $300m in a Series B round led by Radical Ventures, with participation from NVIDIA (NASDAQ: NVDA), Atreides Management, Valor Equity Partners, Adobe Ventures, Toyota Ventures, and eBay Ventures (NASDAQ: EBAY) as new investors, alongside returning backers Sequoia Capital, Benchmark, and Zeev Ventures. Private investors include OpenAI co-founder Andrej Karpathy (now at Anthropic), former Walt Disney CEO Michael Eisner, the Nintendo (TYO: 7974) founding family office Yamauchi-No.10, and gaming investor Moritz Baier-Lentz. Amazon (NASDAQ: AMZN) has also joined as a strategic customer and chip co-design partner through its Annapurna Labs division. The round values Decart at approximately $4B post-money valuation.

The deal caps the fastest seed-to-mega-round arc InvestGame has tracked in the AI-gaming category. Founded in late 2023 by CEO Dr. Dean Leitersdorf and CPO Moshe Shalev, Decart emerged from stealth with a $21m Seed round in Oct’24, led by Sequoia Capital. It followed with a $32m Series A, led by Benchmark, just two months later at a post-money valuation of over $500m. In Aug’25, a further $100m round valued the company at $3.1B, reaching unicorn status. With this latest raise, the company has achieved an approximately 8x valuation step-up in 17 months — materially outpacing the broader AI infrastructure median of 3-4x in the same window. Total funding now exceeds $450m across four publicly disclosed rounds in 19 months.

Decart is a vertically integrated AI research lab building real-time world models and the ultra-optimized infrastructure to power them. Unlike horizontal AI providers that focus on text-based language models, Decart develops systems that simulate and generate interactive digital environments in real time, responding to user input in under 30 milliseconds. The company currently ships three core product lines:

• DOS (Decart Optimization Stack) — a full-stack inference and training platform for LLM, agentic, video, and world model workloads across NVIDIA GPU, Google TPU, and Amazon Trainium hardware. DOS 2.0, announced alongside the raise, delivers over 1,600 tokens per second for agentic inference (versus an industry average of ~200) and full-HD video at up to 100 frames per second.
• Lucy — a world model for immersive experiences, already deployed in production for real-time applications across gaming, e-commerce, streaming, and dynamic in-video advertising. Lucy 2.5, an updated model, is set to be released in the coming weeks.
• Oasis — a world model for physical AI, generating interactive, physically accurate, real-time simulations for robotics and autonomous systems. Oasis first drew attention as the AI-generated Minecraft demo that emerged during Decart’s stealth phase in 2024. Oasis 3 is set to launch in the coming weeks.

Together, these three product lines position Decart as one of the few AI companies building across the full stack from inference infrastructure to real-time content generation, with live deployments already in production. The gaming implications are notable: Decart’s Oasis model, developed with Etched in Oct’24, already demonstrates a playable world generated entirely in real time by a foundation model with no underlying physics engine. Through its strategic partnership with Amazon Web Services, Decart has also expanded Lucy into corporate deployment across media, live advertising, and commerce, operating at under 30ms latency, well within the sub-35ms threshold required for live web commerce. The diversity of the investor base signals that these technologies are approaching commercial viability across multiple verticals simultaneously.

Decart’s raise underscores a broader acceleration of AI-focused capital flowing into gaming. Annual deal value has grown approximately 9x since 2020, with growth accelerating into 2026 — 2026 YTD already matches 2025’s full-year total before mid-year. The composition of capital is also shifting: while seed activity still leads by deal count, Series B and later rounds account for the majority of dollars deployed in the trailing 24 months, suggesting the category is moving past the exploratory phase and into scaled deployment. Geographically, North America leads by a significant margin, while Israel’s figures largely reflect Decart’s four compounding raises.

Decart’s $300m round leads the five largest AI-gaming infrastructure raises since 2024 by a wide margin, at more than twice the size of RayNeo’s $143m funding and General Intuition’s $133.7m Seed round. The remaining cohort spans hardware, world models, audio, and cloud infrastructure across four geographies, underscoring that scaled capital is now reaching every layer of the AI-gaming stack. We will continue to monitor this category as late-stage concentration deepens. 

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MERGERS & ACQUISITIONS

US-based Minecraft server operator InPVP has acquired the assets of Feather Client, a third-party Minecraft launcher from Silentstack, in a cash transaction and has rebranded the product as Dawn. The deal includes Feather Client’s in-game technology and user base. InPVP, an official Minecraft partner led by CEO Mohamed Weheba, plans to pivot away from ad monetization toward cosmetics and in-game item sales, and has pledged $100k toward tournament programming in 2026.

VENTURE FINANCING

US-based gamified social media platform Status AI has raised $17m in combined Seed and Series A funding from Abstract, General Catalyst, Union Square Ventures, Y Combinator, and LightShed Partners. The platform allows users to craft AI-generated personas and participate in interactive social worlds across any character or fictional universe, blending social networking with immersive entertainment. Founded by Fai Nur (CEO), Amit Bhatnagar (CPO), and Pritesh Kadiwala, Status AI launched publicly in 2025 and has seen over 13 million user-generated worlds and more than 5 million character profiles created. The capital will fund platform scaling.

China-based generative AI company HiDream AI has raised a ~$14.7m (RMB 100m+) round led by Shenzhen Capital Group, with Jinpu Investment, Caixin Capital, and Fuju Capital. Previously in Apr’26, the company raised ~$73.3m (RMB 500m+), with proceeds earmarked for model R&D, enterprise AI agents, and global expansion. Founded in 2023, the company builds visual multimodal foundation models for AI-driven image and video creation and editing, targeting enterprise clients across creative and productivity workflows; its open-source HiDream-I1, released in Apr’25, was followed by HiDream-O1-Image (8B), with the 200B+ closed-source HiDream-O1-Image-Pro setting new SOTA across multiple benchmarks. Commercial products include HiBurst, a marketing agent and TikTok official top-5 service provider; Zhanzhan, a film creation agent; and Vivago AI, a social media agent with 40m+ users across 100+ countries.

UAE-based AI-native game engine and creator platform Sparq has raised $8.5m in Seed funding led by a16z. Founded by Christopher Pail (CEO) and Christoffer Wilhelmsen (COO), Sparq is building a game engine and creator platform for solo developers, allowing a single person to build, publish, and monetize games across multiple platforms without coding or technical production expertise. The platform is intended to automate development tasks that are typically distributed across a full studio team.

UK-based gaming and virtual worlds analytics platform GEEIQ has raised $6.8m (£5m) in a Growth round led by YFM Equity Partners, with participation from GFR Fund and Haymarket Media Group. The capital will fund AI-powered planning and measurement capabilities, deeper data partnerships with emerging platforms, and expansion into new verticals and international markets. GEEIQ provides cross-platform analytics for brands operating in gaming and virtual worlds such as Roblox, Fortnite, and  Zepeto, serving clients including Walmart, L’Oréal, Gucci, NASCAR, and Warner Bros Discovery. Founded by CEO Charles Hambro and based in London, GEEIQ previously raised $8.2m (£6.6m) in Sep’23, with YFM Equity Partners leading the round, bringing YFM’s total commitment to ~$11.8m (£8.7m) across both rounds.

Finland-based PC & Console games developer Cosmic Division has raised an undisclosed sum in a Seed round. The studio was founded by Harry Krueger, a former game director at Housemarque, a Sony Interactive Entertainment studio, where he spent nearly 15 years. His credits include directing the roguelike third-person shooter Returnal and the twin-stick shooter Nex Machina, as well as contributions to Resogun and the early development of Saros. Krueger departed Housemarque in 2023. Cosmic Division is developing a new, as-yet-unannounced single-player IP for PC & Console.

Singapore-based mobile-first UGC platform Tomoland has raised $2m in Seed funding led by Sky9 Capital, with participation from WAGMI Ventures and Aureus Dealers, alongside angel investors from Meta (NASDAQ: META), Depinx Capital, NetEase (NASDAQ: NTES), and Virtuals. Built on the BUD World infrastructure, which has surpassed 30 million combined downloads, Tomoland merges AI-powered game creation with Web3 ownership, allowing creators to monetize user-generated content through a native token economy.

India-based virtual fashion platform Meta Fashion has raised ~$400k in a pre-Seed round led by Lumikai, with participation from angel investors including Big Bets.vc (the family office of Anton Gauffin), Akshat Rathee, and Pratham Mittal. Founded in 2022 by Arjun Goel, Meta Fashion creates digital fashion for UGC platforms, including Roblox, Fortnite, and Zepeto, and operates GlamGirls, a dress-up game on Roblox with over 100,000 paying users. The capital will fund platform expansion and growth of the company’s original IP.

Germany-based public games initiative Gamecity Hamburg has awarded prototype funding grants of up to $87k (€80k) each to five Hamburg-based games studios, from a total annual pool of $432k (€400k). The non-repayable grants cover up to 80% of eligible project costs and are administered through Hamburg Kreativ Gesellschaft. The five recipients are Pipapo Games, Odd Zeroes, Studio Gutheil, Chasmic Drop, and Bird Outside Studio, all of which are developing PC & Console projects.

Canada-based PC & Console games developer Studio Reset has received $183k (CAD 250k) from the Canada Media Fund through its Interactive Digital Media Prototyping program. Founded by Kaelin Lavallée (creative director), Kris Schoneberg (design director), and Francis Lacuna (art director), former developers at BioWare, Inflexion Games, and Timbre Games with collective credits including the action RPGs Mass Effect and Dragon Age, plus survival game The Long Dark, Studio Reset is developing an as-yet-untitled neon-noir supernatural mystery game for PC & Console.

PUBLIC OFFERINGS

Sweden-based Embracer Group (STO: EMBRAC B) has announced its intention to spin off Fellowship Entertainment as a separately listed company on Nasdaq Stockholm, with listing planned for calendar year 2027. On the day of the announcement, EMBRAC B shares opened 7.5% higher before closing 2.1% lower at SEK 68.00, as the spin-off news coincided with a ~$771m (SEK 7.2B) impairment charge; the stock recovered to SEK 70.96 by May 22. Fellowship Entertainment will be an IP-led entertainment company stewarding franchises including The Lord of the Rings, Tomb Raider, Metro, Kingdom Come: Deliverance, Dead Island, Darksiders, and Remnant, across 11 studios and companies, including Crystal Dynamics, Eidos-Montréal, 4A Games, Warhorse Studios, and Flying Wild Hog. Embracer Group generated net sales of ~$1.52B (SEK 15.9B) in FY 2025/26, down 25% YoY (-3% organic), with Adj. EBIT of ~$87m (SEK 905m), down from ~$266m (SEK 2.8B) in the prior year; Fellowship employs 2,169 people, including 1,600+ internal game developers. Phil Rogers (CEO) and Lee Guinchard (COO) will lead Fellowship Entertainment post-separation. Shares will be distributed to Embracer shareholders via a Lex ASEA dividend, subject to approval at the general meeting.

China-based generative AI and 3D digital asset company Global Mofy (NASDAQ: GMM) announced the pricing of an approximately $8m registered direct offering of 8,247,420 Class A ordinary shares at $0.97 per share, accompanied by an equal number of Series A and Series B warrants, with D. Boral Capital serving as exclusive placement agent. Net proceeds are intended for working capital, product development, and expansion of the company’s AI-powered technology platforms and infrastructure, with closing expected on or about May 26. The company operates the proprietary Mofy Lab platform, combining 3D and AI technology to create high-precision digital assets across characters, objects, and scenes for use in gaming, film, AR/VR, animation, and advertising, with a library of over 150,000 3D assets. Concurrent with the offering, the company announced a milestone for Gausspeed, its AI platform developed in conjunction with NVIDIA Omniverse, which connects to its digital asset libraries.

Japan-based live-streaming platform operator Moi (TYO: 5031) has raised ~$5.8m (¥920m) via third-party allotment of 3,351,000 new shares at ¥275 per share to SBI Holdings (TYO: 8473). Combined with a separate share transfer from founder and CEO Yosuke Akamatsu, SBI Holdings will hold a 20.41% stake with voting rights, becoming an affiliated company of Moi. At the time of the announcement, Moi carried a market capitalization of approximately $24m (¥3.8B); shares surged 147% from their pre-announcement close of $1.73 (¥275) to $4.27 (¥680) by May 22, lifting market capitalization to approximately $60m (¥9.5B). Proceeds will fund service development and marketing expenses, with the alliance also covering joint creator development, paid streaming expansion, and overseas content distribution. Moi operates TwitCasting, a live-streaming platform launched in 2010 with 42 million cumulative registered users and a 21% market share among major domestic streaming apps as of Apr’26.

Canada-based F2P mobile games developer and publisher East Side Games Group (TSX: EAGR) has raised $2.14m (CAD 2.95m) via a non-brokered private placement of 26,896,816 units at $0.08 (CAD 0.11) each, with warrants exercisable at $0.10 (CAD 0.14) through May’29. Proceeds will repay outstanding debt and fund operating expenses, following a covenant breach on its RBC credit facility. Directors Derek Lew and Russell Ovans subscribed for $724,000 (CAD 1m) and $15,928 (CAD 22,000) respectively. The company develops original and licensed IP mobile titles across its ESG and LDRLY labels and licenses its GameKit platform. After revenue of $60.1m (CAD 83m) and Adj. EBITDA of $8.4m (CAD 11.6m) in FY2024, FY2025 saw revenue decline to $56.2m (CAD 77.6m) with Adj. EBITDA collapsing to $0.58m (CAD 0.8m) on over-investment in user acquisition; Q1’26 revenue fell a further 32% YoY to $9.1m (CAD 12.5m). The company has since restructured, cutting headcount and narrowing its UA return window from 365 to 60 days, and guides for $36.2m–$40.5m (CAD 50–56m) in FY2026 revenue at 15–18% Adj. EBITDA margins.

FUNDRAISING

US-based entertainment and media investment firm Shamrock Capital has closed its fourth content acquisition vehicle, Shamrock Capital Content Fund IV, with $813m in commitments, exceeding its $700m target. The fund was oversubscribed at first close and raised in approximately three months without a placement agent. It targets premium, cash flow-generating content rights across music, film, television, sports, video games, and the creator economy, with LPs including pension funds, endowments, foundations, family offices, and insurance companies from the US, Europe, and Asia-Pacific. Content Fund IV brings Shamrock’s Content Strategy to over $3.3B in AUM and total firm AUM to approximately $7.4B. Founded in 1978 as Roy E. Disney’s family investment vehicle, Shamrock launched its Content Strategy in 2015.

Gaming and entertainment investment firm Kensei Capital has launched a $500m growth-stage fund targeting paradigm-shifting creators and companies at the intersection of entertainment and technology. The firm is led by founder and Managing Partner Justin Shriram Keeling, a gaming and entertainment industry veteran who previously co-founded India-focused gaming VC fund Lumikai. The fund invests at Series C and beyond in $10m–$20m checks, sourcing exclusively from leading Series A/B funds and a proprietary global creator network. Kensei is backed by five global family offices across Tokyo, Singapore, Zurich, London, and Washington DC.

South Korea-based gaming and culture tech company Superfast has announced an $8.1m (₩11.1B) initiative to invest in indie games with global IP potential. Led by CEO Kim Kang-an, the company plans to discover, fund, and publish indie titles across genres, extending successful IPs across webtoons, fashion, and offline experiences. Superfast will host a demo day in Jun’26 for developers to pitch projects for direct investment and publishing consideration, and will provide selected studios with operational support, including office infrastructure in Seoul and Jeju.

OTHERS

Argentine rapper Duki (real name: Mauro Ezequiel Lombardo) has invested in Argentina-based esports organization 9z Globant, getting a minority stake in the company whose title sponsor is technology firm Globant (NYSE: GLOB). The transaction, announced as the start of “la 9 era,” brings one of Latin America’s most prominent trap and urban music artists into the organization’s ownership structure. 9z Globant competes across titles, including CS2, Valorant, and League of Legends.