Infinite Reality, a company based in Boca Raton, Florida, has entered into a definitive agreement to acquire agentic AI firm Touchcast for $500 million in a transaction involving both cash and stock. The move follows a series of acquisitions by Infinite Reality aimed at expanding its presence in the fields of artificial intelligence, immersive technology, and digital media.

Infinite Reality To Acquire Touchcast

Over $15 Billion Valuation

The acquisition comes shortly after Infinite Reality’s $207 million purchase of music platform Napster. With this latest deal, the company says its valuation now stands at $15.5 billion. According to Infinite Reality’s Chief Business Officer Amish Shah, the company has deliberately moved away from identifying itself with the term “metaverse,” due to the hype and skepticism that have grown around the concept since it was popularized. Instead, the company focuses on building platforms rooted in immersive technology, seeking to provide practical tools for businesses and consumers alike.

Infinite Reality: Immersive Web, Infinite Potential  

Touchcast’s Role in Infinite Reality’s Strategy

Touchcast is known for its agentic AI platform called Mentorverse, which allows users to interact with AI-generated, human-like avatars capable of holding conversations through face-to-face video interfaces. These AI mentors are designed to offer domain-specific knowledge and deliver support in a natural and multimodal format. The technology enables businesses to deploy scalable and interactive customer service, sales support, and user engagement tools.

The integration of Touchcast’s capabilities into Infinite Reality’s suite of services is expected to offer significant enhancements across several areas. For instance, within Napster, the technology could support features like immersive music-listening environments, AI-generated playlists, and interactive music trivia experiences. For enterprise clients and creators using Infinite Reality’s studio and enterprise tools, the addition of Touchcast’s AI agents will help deliver more personalized customer service and sales interactions, with avatars trained to represent specific brands and industries.

Infinite Reality: Build Your Perfect World

Company Leadership and Industry Perspective

The leadership teams of both companies emphasized the strategic nature of the deal. Touchcast founder and CEO Edo Segal, a veteran entrepreneur in the AI space, noted that this is the fifth AI-focused company he has led to acquisition. He described Infinite Reality as a strong match for Touchcast’s mission to humanize AI interactions. Segal said the company has worked to develop tools that transform traditional chatbot models into interactive systems capable of offering tailored support in a conversational manner.

Shah pointed out that Infinite Reality’s leadership team, which includes experienced entrepreneurs with previous business exits, has been deliberately building a cohesive story around its acquisitions. He said that while some tech companies have emerged with unclear goals and inflated valuations, Infinite Reality has focused on aligning with partners that have clear visions and proven products. Shah confirmed that discussions with Touchcast began following an initial meeting at the Web Summit and developed over several months of due diligence.

Infinite Reality: Clients

Expanding AI Capabilities Across Industries

Touchcast operates using infrastructure from Microsoft Azure and integrates technologies from OpenAI. The company has raised $60 million to date and counts large firms such as Accenture among its clients. Its AI offerings are SOC2 compliant and supported by 27 patents that cover a range of technologies including virtual assistants, interactive video conferencing, and coordinated presentation systems.

Touchcast’s platform allows for rapid deployment of AI-powered experiences. In a demonstration, the company showcased how its system could turn any website into an interactive, AI-supported 3D experience within minutes. This approach, which historically required extensive time and resources, is now available as a near-instant service, highlighting the efficiency of agentic AI in modern web applications and gaming.

Infinite Reality: Over 150M Interactions in Immersive Experiences 

Strategic Growth and Investor Confidence

This acquisition is the latest in a string of deals for Infinite Reality, which previously acquired companies such as Obsess, Stakes, Drone Racing, Ethereal, and Action Face. The company also holds a majority stake in Super League Gaming. Earlier in 2024, it raised $350 million and acquired Landvault. In January of the same year, Infinite Reality raised $3 billion in funding at a valuation of $12.25 billion, although the identity of the lead investor was not disclosed.

Infinite Reality has disclosed a list of investors and shareholders that includes RSE Ventures, Liberty Media, Lux Capital, Lerer Hippeau, and Live Nation, among others. Notable individual backers include music producer Steve Aoki, the band Imagine Dragons, and NBA player Rudy Gobert.

CEO John Acunto said the acquisition of Touchcast will help Infinite Reality accelerate its broader strategy to develop a more personalized and conversational version of the internet, aligned with developments in web3, blockchain, and immersive digital environments. He stated that Touchcast’s technology has immediate applications across the company’s portfolio and will play a key role in supporting Infinite Reality’s goal of building more intuitive, AI-enhanced digital experiences.

Infinite Reality: Now Available on Google Cloud Marketplace 

Conclusion

With the $500 million acquisition of Touchcast, Infinite Reality is positioning itself to become a significant player in the evolving landscape of AI-powered digital interaction. By focusing on immersive technology and steering clear of buzzwords, the company continues to expand its reach in a measured and strategic manner. Touchcast’s expertise in agentic AI and its application across multiple industries is expected to enhance Infinite Reality’s service offerings, particularly as businesses seek scalable and human-like AI solutions.

Source: GamesBeat