Before the era of artificial intelligence took center stage, cryptocurrency held the spotlight for many investors. As generative AI made significant strides, some venture capital firms swiftly shifted their focus between AI and crypto, drawing criticism from industry observers. In contrast, a cohort of entrepreneurs emerged as ardent proponents of the fusion of AI and cryptocurrency. Recently, Vitalik Buterin, the primary architect of the Ethereum blockchain network, stirred excitement among his Twitter followers by contemplating the four potential applications of “AI + crypto” in a recent article. However, the scalability of these applications is yet to be demonstrated.
In Singapore, a startup is challenging the notion that the amalgamation of AI and cryptocurrency is merely a passing trend. Ultiverse, a platform claiming to be “AI-powered” for crypto game development and distribution, has garnered backing from reputable investors. Notably, the company raised $4 million in a strategic funding round led by IDG Capital, a venture capital firm renowned for its investments in prominent Chinese tech giants like Tencent, Baidu, Xiaomi, as well as crypto pioneers like Coinbase and Circle.
Among the investors participating in the funding round were Animoca Brands, Polygon Ventures, MorningStar Ventures, Taiko, ZetaChain, Manta Network, DWF Venture, and Jacob KO. This recent influx of capital propelled Ultiverse’s valuation to $150 million.
How exactly does Ultiverse leverage AI within its crypto ecosystem? In a TechCrunch interview, Jimmy Liu, the co-founder of the company and former head of his family’s private equity firm, suggested that AI could expedite production processes and enhance user adoption.
Rather than developing AI models from the ground up, Ultiverse is utilizing pre-existing large language models like GPT-4, Llama, and Stable Diffusion to train its in-game non-player characters. This approach ensures that each player’s interaction with the NPCs results in a unique experience. Additionally, players have the ability to create their own AI agents to act on their behalf.
Liu explained, “Previously, tasks like this could take days or even weeks, requiring significant manpower. However, with AI integration, we have streamlined the production process, reducing both time and costs while maintaining the same output volume.”
While incorporating AI into game design processes may not be the startup’s sole competitive edge, as other studios can similarly leverage LLMs, Ultiverse has already published three games. Notably, one of their games—a mobile cricket game—has attracted 200,000 active wallet addresses, primarily from regions like India and Pakistan where cricket enjoys immense popularity. As of December, Ultiverse boasts 7.3 million registered users across all its games, with an average of 830,000 monthly active users.
By utilizing a common crypto wallet feature known as “account abstraction,” which simplifies the complexities of self-custodial wallets, the cricket game successfully onboarded a predominantly non-crypto user base. Liu noted, “The transition is seamless until users need to withdraw their rewards, at which point they realize that this experience goes beyond a typical game.” This strategy has enabled Ultiverse to convert traditional web2 gamers into participants in their web3 ecosystem.
An IDG Capital spokesperson expressed optimism about Ultiverse’s future, labeling it as an AI-powered, comprehensive solution for web3 gaming production and distribution set to revolutionize the industry. The firm’s investment in Ultiverse reflects their confidence in the company’s ability not only to lead but also to transform the global gaming development landscape.
