In an Ultiverse once captivated by the allure of cryptocurrency, the spotlight has shifted, thanks to the strides made by generative AI. The transition of some venture capital firms from an exclusive focus on AI to cryptocurrency prompted skepticism among industry observers, labeling it as opportunism. However, amidst the shifting tides, a cadre of entrepreneurs has risen like Ultiverse, championing the convergence of AI and crypto.
Vitalik Buterin, the visionary founder of the Ethereum blockchain network, recently sparked fervor on Twitter by contemplating the four potential applications of “AI + crypto.” Despite the excitement, the actualization of these use cases at scale remains unproven.
Singapore-based startup Ultiverse, positioning itself as an “AI-powered” platform for crypto game production and publishing, challenges the notion that AI and crypto are merely a fleeting trend. Securing substantial backing in a strategic funding round led by IDG Capital, known for investments in tech giants Tencent and Baidu, as well as crypto pioneers Coinbase and Circle, Ultiverse recently raised $4 million, catapulting its valuation to $150 million.
The amalgamation of AI and crypto in Ultiverse’s realm goes beyond mere rhetoric. Co-founder Jimmy Liu, previously at the helm of his family’s private equity firm, elucidates how AI accelerates production and user adoption. Instead of crafting AI models from scratch, they employ existing large language models like GPT-4, Llama, and Stable Diffusion to train in-game non-player characters. This approach ensures each player’s experience is unique based on interactions with these NPCs. Players can even create their AI agents to operate on their behalf, introducing a dynamic layer to the gaming experience.
Liu emphasized the transformative impact of AI integration, reducing production time and costs significantly. However, the true competitive edge lies beyond mere AI utilization, as other studios can similarly leverage large language models. The ongoing debate surrounding crypto games questions their tangible value in fostering user ownership and liquidity of assets versus merely profiting from players.
Ultiverse, having already released three games, including a mobile cricket game with 200,000 unique active wallet addresses, has made strides in overcoming these challenges. With 7.3 million registered users across all its games as of December and monthly active users averaging 830,000, Ultiverse’s approach seems to resonate, especially in regions like India and Pakistan, where cricket holds immense popularity.
Utilizing a crypto wallet feature called “account abstraction,” the cricket game successfully attracted non-crypto users, offering a seamless experience until the withdrawal stage, where users realize the game’s deeper connection to the crypto ecosystem. According to Liu, this approach helps convert traditional “web2 gamers” into participants in Ultiverse’s web3 ecosystem.
In a statement, an IDG Capital spokesperson expressed confidence in Ultiverse, heralding it as an “AI-powered, one-stop solution for web3 gaming production and publishing,” poised to revolutionize the industry. This investment reflects IDG Capital’s belief in Ultiverse’s potential to lead and transform the global gaming landscape. Ultimately, Ultiverse stands at the forefront, intertwining AI and crypto, creating a paradigm shift in the gaming industry.