Infinite Reality Boosts AI with $500M Touchcast Acquisition
Metaverse platform Infinite Reality (IR) is making a bold leap in its AI journey by acquiring agentic AI firm Touchcast Inc. for $500 million in cash and stock. The move follows a string of strategic acquisitions by IR, including Napster for $207 million in March and Zappar Ltd. for $45 million last year. Previously, it had also added Landvault for $350 million, strengthening its immersive content creation capabilities.
With Touchcast now under its umbrella, Infinite Reality’s valuation climbs to $15.5 billion. The deal enables IR to integrate AI deeply into its metaverse services, aligning with its mission to create immersive digital spaces for brands and creators. Notably, Touchcast is known for its advanced AI video avatars—lifelike digital assistants that go far beyond basic chatbots. These avatars are designed to respond with human-like gestures and emotional depth.
AI-Powered Experiences for Businesses and Creators
The acquisition marks a turning point for Infinite Reality’s product suite. By leveraging Touchcast’s technology, IR can now provide more intelligent and responsive interactions inside its virtual worlds. These AI-driven agents are built on OpenAI’s models and run via Microsoft Azure, supported by a $50 million strategic partnership. Moreover, Touchcast holds 27 patents, covering everything from video conferencing improvements to interactive AI assistants.
Edo Segal, Touchcast’s co-founder and CEO, described the merger as a natural evolution. “From day one, our mission has been to humanize AI,” he said. “We want to move beyond chatbots to create experiences that feel intuitive and alive.” His vision aligns closely with IR’s plans to blend immersive environments with lifelike digital intelligence.
Transforming the Metaverse with Agentic AI
With this merger, IR is poised to offer smarter metaverse solutions across industries. In Napster, for example, subscribers will soon access AI-driven social listening spaces for music curation, trivia, and community engagement. Furthermore, business clients can deploy 3D AI sales assistants for realistic customer interaction.
Developers also stand to benefit. Touchcast’s AI can automate the creation of 3D models, textures, and other assets greatly accelerating content production. According to IR CEO John Acunto, “Agentic AI is the future of digital interaction. With Touchcast, we’re unlocking powerful tools for creators, companies, and consumers alike.”
In sum, this acquisition strengthens Infinite Reality’s position at the intersection of AI and immersive media ushering in a new era of virtual engagement.
