Latent Technology, a London-based startup specializing in AI-powered animation tools for game developers, has raised $8 million in a seed funding round. The company, founded in 2022 by Jack Harmer and Jorge del Val, is developing a new approach to animation based on what it calls "generative physics." This method combines neural networks with real-time physics to produce animation that responds dynamically to gameplay conditions, offering an alternative to traditional, pre-scripted animation techniques.

Latent Technology Raises $8 Million

Latent Technology Raises $8 Million

The seed funding round was co-led by AlbionVC and Spark Capital, with participation from Root Ventures and Alumni Ventures. The investment will be used to further develop Latent’s core technology and product offerings, particularly the Latent Behaviour Engine. This tool aims to help game developers implement real-time, emergent animation behaviors in their games with minimal manual intervention. The company is currently working with select studios through a closed beta and plans to release two technology demos later in the year to demonstrate the capabilities of the system.

Latent’s technology is built on a proprietary model called Phoenix, described by the company as a foundation model for animation. Unlike large language models, Phoenix is tailored to handle the generation of physical animation in real-time. In an interview with GamesBeat, CEO Jorge del Val, said the goal is to offer game developers a tool that allows them to define interactive behaviors without relying on pre-rendered or pre-scripted movement sequences.

Latent Technology Raises $8 Million

Meeting Industry Demands with New Animation Models

As game development budgets continue to rise—projected to grow at a compound annual rate of 8 percent through 2028—there is increasing pressure on studios to create high-quality, cost-effective content. Latent Technology believes that its generative physics model can help address this challenge by reducing the manual effort required to animate game characters and environments. The system enables developers to quickly prototype and deploy behaviors that adapt to changing gameplay conditions, enhancing both development efficiency and player experience.

In interviews, del Val emphasized the company’s focus on foundational change rather than incremental improvement. He said that while many in the industry are using AI to optimize existing processes, Latent’s approach is designed to introduce entirely new possibilities in animation, where characters appear to interact naturally and respond in real time, as if they were alive.

Latent Technology Raises $8 Million

Bridging Development and Real-Time Interactivity

Latent is positioning its technology as a core component of future game development pipelines. The company aims to stay closely aligned with developer needs by shipping playable demos and refining tools through direct feedback. By eliminating the traditional barriers of hand-crafted animation, Latent intends to make it easier for developers to experiment with and deploy new types of interactive content.

The team currently consists of six members and is expected to grow over the coming months as the company hires for both technical and product roles. Latent is operating under a hybrid remote model and continues to focus on developing the tools needed to support its core animation technology.

A Recognized Emerging Player in Game Technology

Latent Technology was recognized as a "Game Changer" at GamesBeat Next 2024, highlighting its potential impact on the industry. According to AlbionVC investor Sebastian Hunte, the company’s generative animation model could become foundational to game development in the same way that large language models have transformed content creation. Latent’s emphasis on dynamic, emergent experiences positions it as a notable player in the ongoing evolution of real-time game development.

As the company moves forward with development and expands access to its tools, Latent Technology aims to establish generative physics as a standard for animation in modern games, providing a flexible and responsive alternative to conventional animation pipelines.