Inworld AI, a startup developing conversational AI technology for video games, has raised an additional $50 million in a new funding round. With this latest infusion of capital, Inworld has now raised over $120 million total since its founding in 2021, becoming the best-funded startup in the intersection of AI and gaming according to the Nasdaq.
The new funding comes from prominent investors including Lightspeed Venture Partners, First Spark Ventures, Samsung Next, and LG Technology Ventures. Inworld’s valuation now sits at half a billion dollars following this successful round.
According to CEO and founder Ilya Gelfenbeyn, the new financing will support continued research and development on Inworld’s Character Engine technology that powers intelligent NPCs (non-player characters). The startup also plans to expand its engineering team, build out infrastructure, and release some platform components as open source to collaborate with the developer community.
Inworld says its Character Engine goes beyond just conversational AI to enable NPCs to express themselves through voice, facial expressions, and body language. The technology also allows characters to form adaptive relationships with players, initiate goals and actions, and stay true to their virtual world.
With multiplayer AAA titles expected to increasingly incorporate advanced NPCs and virtual worlds moving toward human-level AI, Inworld’s fresh funding and rapidly growing platform put it in a strong position to shape the future of AI in the $200 billion gaming market.