Inworld AI is valued at $500 million in its latest funding round.

Inworld AI raises $50M round at $500M valuation for AI game characters

Inworld AI has raised $50 million funding from Lightspeed Venture Partners, bringing the valuation of the maker of an AI-based character engine for games to over $500 million.

That valuation makes Inworld into a frontrunner when it comes to AI and games. The round includes additional investments from Stanford University, Samsung Next, and new and existing strategic investors such as Microsoft’s M12 fund, First Spark Ventures cofounded by Eric Schmidt, and LG Technology Ventures.

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Dean Takahashi

Dean Takahashi is editorial director for GamesBeat. He has been a tech journalist since 1988, and he has covered games as a beat since 1996. He was lead writer for GamesBeat at VentureBeat from 2008 to April 2025. Prior to that, he wrote for the San Jose Mercury News, the Red Herring, the Wall Street Journal, the Los Angeles Times, and the Dallas Times-Herald. He is the author of two books, "Opening the Xbox" and "The Xbox 360 Uncloaked." He organizes the annual GamesBeat Next, GamesBeat Summit and GamesBeat Insider Series: Hollywood and Games conferences and is a frequent speaker at gaming and tech events. He lives in the San Francisco Bay Area.