Infinite Reality acquires agentic AI firm Touchcast in $500M deal, eyes expansion across digital ecosystem

Infinite Reality (iR) has entered a definitive agreement to acquire Touchcast, a company specializing in agentic artificial intelligence, in a $500 million cash-and-stock transaction. The acquisition places Infinite Reality’s valuation at $15.5 billion and marks its largest deal to date.

The move will bring Touchcast’s flagship platform, Mentorverse, into iR’s suite of digital products, which includes Napster, iR Studio, and iR Enterprise. Mentorverse offers AI agents that simulate face-to-face video interaction, aiming to replace traditional web chatbots with more dynamic, personality-driven AI guides.

Following the acquisition, Touchcast’s technology will be woven into multiple arms of iR’s operations. For Napster users, AI tools will assist in creating social music spaces, personalized playlists, and community features. In the enterprise space, Touchcast’s AI agents will be deployed to support scalable customer service and sales processes, offering brands and creators on-brand digital assistants tailored for interaction.

Touchcast’s systems run on Microsoft Azure and are built with a $50 million strategic partnership with OpenAI. The company’s platform, which holds 27 patents, includes tools for creating responsive, human-like AI agents, converting static websites into interactive platforms, and managing complex video-based communications. These technologies are SOC2 compliant and designed for enterprise-grade scalability.

The acquisition is part of a broader growth strategy for Infinite Reality, which recently completed a $3 billion funding round and previously acquired Napster. The addition of Touchcast is aimed at strengthening its capabilities in AI-driven interaction and immersive digital experiences.

Infinite Reality plans to implement Touchcast’s technology across its customer-facing and business-focused platforms to drive higher engagement and enhance personalization.

Touchcast CEO and founder Edo Segal will join Infinite Reality as part of the agreement. Segal brings a long history of building AI and communication-focused companies, with prior ventures acquired by AOL, Answers.com, and Livestream.

Segal noted that the merger provides an opportunity to bring Touchcast’s technology to a broader market, enabling more businesses and creators to integrate emotionally resonant AI into their digital experiences.

While specific product updates from the integration have not yet been announced, both companies signaled that future offerings will prioritize conversational interfaces and intelligent customer engagement tools that bridge content, service, and ecommerce.