Unity stock up 15% after company announces AI marketplace

Unite Shares rose more than 15% to $42.38 per share on Tuesday after the gaming tools maker announced AI Software Market This makes it a platform for the hottest part of the tech industry.

Unity’s customers, who use its game engine software to make games for phones, consoles and virtual reality headsets, will be able to choose software that uses AI from independent companies like Inworld AI to generate game dialogue or features like textures and graphics. or poly hive.

AI companies will be able to distribute their software to game makers for a fee through Unity’s Asset Store.

The surge in Unity’s price comes as company officials have spoken in recent weeks about the potential they see in artificial intelligence.

Unity CEO John Riccitiello said: “I think artificial intelligence is going to change games in a few pretty profound ways. One of them is that it will make games faster, cheaper, and better. .” an interview Associated Press release Monday. “It’s already happened.”

Separately, Wells Fargo analyst Brian Fitzgerald gave the company an overweight rating and $48 price target in a note Tuesday.

Fitzgerald and his team say investors may view Unity’s current share price as a buying opportunity as the company expands beyond games with “digital twins” and other enterprise-oriented simulation products. outside.

“While we acknowledge that, in the long run, consolidation in the interactive entertainment industry may drive larger studios to develop and use proprietary game development tools/assets, we believe in Unity’s strong competitive position in this space,” Fitzgerald wrote.

The report also said that “Metaverse” hype is fading, creating a buying opportunity.

Before Unity started directing investor attention to AI, it was closely related to headset work such as Yuanbecause its software can be used to create virtual reality applications.

Earlier this month, apple Says VR apps made with Unity will be supported on the Vision Pro, whose headset is expected to be released early next year.

Riccitiello doesn’t like the term “metaverse,” which Apple has never used. “I’ve always thought that term made sense and was kind of silly,” he said in an interview with The Associated Press.