Infinite Reality Inc., a metaverse company that builds and powers virtual reality immersive digital media experiences for brands and creators, said today it will acquire agentic artificial intelligence firm Touchcast Inc. for $500 million in cash and stock.

The acquisition happened shortly after the company acquired Napster for $207 million in March. Napster is the digital music company best known for gaining popularity with peer-to-peer file sharing in the 1990s. In 2024, IR acquired extended reality company Zappar Ltd. for $45 million, adding the company’s all-in-one extended reality tools to its platform, and acquired Landvault, a technology studio that specializes in building immersive environments for companies and governments, for $350 million.

IR said the transaction agreement with Touchcast will bring its valuation to $15.5 billion.

As a company, Infinite Reality provides “metaverse” services, a term coined by “Snow Crash” author Neal Stephenson that refers to 3D immersive, interactive digital worlds and environments where people can interact, socialize and work. These include virtual reality and augmented reality technologies that allow businesses and creators to build branded immersive content, enabling users to experience products and entertainment by moving through them as they would in real life.

Through the acquisition of Touchcast, IR said, it will be incorporating AI capabilities into all of its product offerings. Touchcast provides a wide variety of services, including AI-powered lifelike video avatars as a key offering. These avatars go beyond traditional chatbots and can act and react like human beings, answer questions and provide intelligent assistance.

Built on OpenAI and delivered on Microsoft Azure through a $50 million strategic partnership, Touchcast holds 27 patents on AI and interactive video technology, including systems for coordinated presentations, videoconferencing enhancements and AI assistants.

“Joining forces with Infinite Reality represents the ideal next chapter for Touchcast,” said Touchcast co-founder and Chief Executie Edo Segal. “From day one, our mission has been to humanize AI — moving beyond chatbots to create intelligent, emotionally resonant experiences that feel intuitive and alive.”

Infinite Reality said integrating Touchcast’s AI agents could fuel a revolution for its customers through numerous metaverse services and products. For example, in Napster AI agents will enable subscribers to generate immersive social listening spaces for music playlisting, community engagement and music trivia.

​”Agentic AI is a big part of how consumers and businesses will interact with the web in the future,” said Infinite Reality founder and CEO John Acunto. “The Touchcast technology has immediate applications across our entire business portfolio and will no doubt provide our customers with instant benefits — whether those customers are Napster subscribers and artists, global Fortune 500 brands, or small businesses.”

The combination of Touchcast’s agentic AI capabilities could enhance Infinite Reality’s solutions in several ways. These include AI-powered sales assistants with 3D avatars capable of having lifelike conversations, personalized experiences in immersive environments driven by AI, and improved interactivity powered by interactive elements. For developers, AI could augment the generation of 3D models, textures and other assets, speeding up the development and creation of virtual worlds for brands and creators.

Image: Infinite Reality