Campfire has raised $3.95m for its generative AI engine, Sprites.
According to Venturebeat, the seed round was supported by Y Combinator, FundersClub, Mercury founder Immad Akhund, gaming entrepreneur and investor Juha Paananen, and Uken Games founder, Chris Ye.
To showcase the tech in action, Campfire is developering its own title, Cozy Friends, which features characters that will "remember previous interactions, retain key info on topics, and display a high level of EQ that affects flow of conversation. No two users will have the same experience."
According to co-founder Siamak Freydoonnejad, this free-to-start inaugural title - which uses 26+ "conversational agent NPCs" - has a 20K+ waiting list.
"The shift to AI-native games represents the biggest advancement in gaming since the move to 3D," Paananen said.
"When I first saw the demo, I was pretty stunned. We think this technology will transform gaming and entertainment, and Campfire is showing a blueprint for AI-native games with Cozy Friends, and the toolset for any developer to do the same with Sprites."
Read more on gamesindustry.biz