A16z’s Joshua Lu says AI is already transforming video games and that Discord represents the future

 

image credits | Andreessen Horowitz 

Andreessen Horowitz’s partner Joshua Lu knows that, in the video game industry, you can never get too comfortable. When he was head of product at Zynga, he experienced the height of mobile games, working on hits like Words with Friends; then as a vice president at Blizzard Entertainment, he helped produce tentpole hits like Diablo Immortal. And then, as a director of product management at Meta, he learned to see games in new dimensions while working on the VR game, Horizon Worlds. “I had to forget what I thought were universal truths and learn a whole new set of ways to do things,” Lu told TechCrunch. Now Lu wants a front-row seat to where video games are heading. After joining the firm as an investor in 2022, Lu was involved in the establishment of the company's Speedrun accelerator, which twice a year invests $750,000 each in around 40 gaming firms. Lu said he has observed how AI and new distribution platforms are transforming the sector. The company is currently in its third cohort, with applications for its fourth cohort now being accepted.

AI firms make up half of the accelerator's current batch; they do everything from using AI to create 3D avatars to crafting stories using AI. He mentioned Diablo Immortal, saying, "The last game that I worked on at Blizzard took six years and a $250 million budget to ship." However, wouldn't it be fantastic if a game of that caliber could be made at a tenth of the price and a tenth of the populace?



We could argue about how AI is doing a better job than high-paying developer roles at the biggest game businesses. However, it's a strong idea if AI also aids in the formation of additional firms and makes them qualitatively competitive.



Lu cites Clementine, a firm that went through Speedrun, as evidence of how he has personally witnessed how businesses are becoming more inventive. To solve a mystery by speaking with AI and making sure they didn't discover you were a human, the company "released a demo," he said. Depending on how much of an existential threat you believe AI could pose, that could be a terrible or humorous idea.



Lu added that Echo Chunk, a business backed by Speedrun, raised $1.4 million in a funding round... With its AI-generated endless-level game Echo Chess, Echo Chunk gained widespread popularity. He stated, "These are all fairly early explorations." "However, the new kinds of game design interactions and game dynamics that AI can unlock excite us overall."

Lu is also in favor of businesses creating games on top of Discord. Discord enabled developers to make apps that users could use within the chat platform earlier this year. Over his career, Lu said he has witnessed a decline in the number of ways where people may find games. For instance, no one now finds games through social media feeds, unlike many who did so with Farmville. "Where will the next platform be where games that are truly social can be made and shared?" Lu stated.

Several businesses entered Discord's accelerator building. Lu stated that during the 12 weeks, a few more switched to developing in Discord. "It's difficult for developers to stand out because more games are being made than ever," he remarked. By adding features to Discord, he intends to make it easier for "people to find pieces of content that they would really like playing."