Studio Atelico secures $5 million to establish an AI-centric gaming studio

In a recent funding development, Studio Atelico secured $5 million during a seed round aimed at supporting their goal to transform how generative AI is utilized in gaming.

This financial boost was spearheaded by Nathan Benaich from Air Street Capital, with the investment being announced through Air Street Press on August 14, 2025. The investment also saw participation from Stanford's Chris Ré, Hugging Face's Thomas Wolf, and Snorkel AI's Alex Ratner.

Established in 2024 by veterans of the AI and gaming sectors from companies like Uber, Meta, and Creative Assembly, Studio Atelico is developing an AI engine for video games. This engine is described by the company as "a toolkit enabling the creation and implementation of AI-driven experiences without requiring extensive resources or unique infrastructures," according to their press release.

The company intends to use the investment not only to develop this technology but also to create games that surpass traditional hand-authored limitations.

The company clarified, "We’re not just talking about generating trees procedurally but envisioning reactive environments, characters that respond dynamically like improv performers, and narratives that extend beyond simple branching. This is the gameplay we’ve always sought as players, and now the technology and team are in place to realize it."

The development of Studio Atelico's inaugural game is underway, with more details expected "soon." Although specific information on the game is sparse, Air Street Press revealed that their upcoming projects are designed for rapidly growing mobile and cross-platform sectors.

Furthermore, Studio Atelico highlighted the importance of ethics in generative AI within their statement.

"Ethics aren't merely considerations for later; they are integral to our core," stated Studio Atelico. They emphasized their efforts to ensure that fairness, consent, and collaboration are vital in their processes, from training models to sharing revenues.

"Opting for on-device AI when feasible, we are collaborating with partners who uphold our values and contributing to open datasets focused on ethical priorities rather than speed," they assured.

"We hold that creativity should be enhanced, not substituted," the company noted.