Latent Tech Secures $8M to Revolutionize Animation With AI Physics

▼ Summary
– Latent Technology raised $8 million in seed funding to advance its AI-driven physical animation technology for games.
– The company’s Generative Physics Animation combines neural networks and physics to enable real-time, dynamic character movements, unlike traditional pre-defined animations.
– Latent’s proprietary model, Phoenix, aims to be the most advanced foundation model for generative physics animation, offering emergent behaviors in games.
– The funding will support scaling the Latent Behaviour Engine, currently in closed beta, and releasing tech demos to showcase the technology.
– The technology addresses rising game development costs by enabling cost-efficient, high-quality animations that react dynamically to player inputs.
Latent Technology has secured $8 million in seed funding to transform animation through AI-powered physics, marking a major step forward for interactive game development. The London-based startup, founded in 2022, is pioneering Generative Physics Animation, a breakthrough approach that replaces rigid, pre-scripted movements with dynamic, real-time character behaviors.
Traditional game animations rely on fixed sequences, limiting how characters respond to unpredictable in-game events. Latent’s solution combines neural networks with physics simulations, allowing for lifelike reactions that adapt instantly to player actions and environmental changes. “We’re building the foundation for emergent animation—where behaviors evolve naturally rather than following predetermined scripts,” explained Jorge del Val, co-founder and CEO.
The funding round, co-led by AlbionVC and Spark Capital, with participation from Root Ventures and Alumni Ventures, will accelerate development of Latent’s Phoenix model—a proprietary system designed to power next-gen interactive experiences. Unlike large language models (LLMs), Phoenix specializes in real-time physical interactions, enabling developers to craft dynamic animations without manual fine-tuning.
Rising production costs in the gaming industry have intensified demand for efficient, scalable solutions. With AAA game budgets growing at 8% annually, studios face mounting pressure to deliver richer experiences without ballooning expenses. Latent’s technology addresses this by automating complex animation workflows, reducing reliance on labor-intensive keyframing.
Currently in closed beta with select studios, Latent plans to release two tech demos later this year, showcasing its Latent Behaviour Engine in action. This tool lets developers define emergent behaviors—like a character stumbling realistically after tripping—using simple directives instead of painstaking animation work. “Our goal is to eliminate barriers, letting creators focus on innovation rather than technical constraints,” del Val noted.
Investors see Latent’s approach as transformative. “Just as LLMs reshaped content creation, this technology could redefine animation in gaming,” said Sebastian Hunte of AlbionVC. The company’s lean team of six plans to double in size by year-end, prioritizing product development and real-world testing.
Early prototypes demonstrate characters reacting fluidly to collisions, terrain shifts, and player inputs—behaviors impossible with traditional methods. “Players will feel like they’re interacting with living entities, not pre-programmed assets,” del Val emphasized. By integrating Phoenix into game engines, Latent aims to make AI-driven physics accessible to developers of all scales, unlocking new creative possibilities.
Named a Game Changer at GamesBeat Next 2024, Latent is now shifting from proof-of-concept to scalable solutions. The seed funding ensures the team can refine its tools while collaborating with studios to push the boundaries of interactive storytelling. “This isn’t about incremental improvements—it’s a fundamental shift in how games animate and respond,” del Val added.
(Source: VentureBeat)