Niantic, the developer behind the global phenomenon Pokemon Go, has made a dramatic shift in its business strategy. The company has sold its games development business to Saudi-owned game maker Scopely for $3.5 billion and is rebranding itself as Niantic Spatial. This move marks a significant departure from its roots in mobile gaming to focus on developing artificial intelligence models for enterprise clients.
The decision to pivot comes as Niantic’s CEO, John Hanke, looks to capitalize on the growing market for spatial computing, which is expected to reach $1.7 trillion by 2033. Niantic’s Large Geospatial Models (LGMs) are designed to help AI understand and interact with physical spaces, much like large language models enable AI to generate text.
Niantic’s Journey
Founded in 2010 as a small gaming division within Google, Niantic was spun out as an independent company in 2015. Its early success with Ingress and later Pokemon Go propelled the company to the forefront of augmented reality gaming. However, replicating this success has proven challenging, with subsequent games failing to match Pokemon Go’s impact.
Challenges and Opportunities
The company’s pivot to enterprise AI is driven by the growing demand for spatial computing technologies. Niantic faces competition from established players like Nvidia and newcomers such as World Labs, founded by AI pioneer Fei-Fei Li. Despite this, Niantic’s existing technology, including its visual positioning system and Scaniverse app, positions it well in the market.
Key Technologies
- Visual Positioning System: Allows for precise location tracking down to the centimeter.
- Scaniverse: An app that creates 3D models of rooms by scanning with a phone.
- Large Geospatial Models (LGMs): Enable AI to understand and navigate physical spaces.
Client Portfolio
Niantic Spatial has already secured several clients, including the Singapore tourism board and government contractor Booz Allen Hamilton. The company is also in discussions with other potential clients across various sectors, including a project described as ‘part theme park, part office park, and part residential.’
Future Prospects
While Niantic will continue to provide augmented reality maps to Scopely post-sale, the company is set to focus on its enterprise business. The sale has raised concerns about data privacy, particularly regarding the transfer of user data to Scopely, a company owned by the Saudi sovereign wealth fund. Niantic has assured that player data will continue to be handled according to strict data privacy laws.
As Niantic embarks on this new chapter, the company is poised to become a significant player in the enterprise AI space. With its robust technology portfolio and growing client base, Niantic Spatial is well-positioned to capitalize on the booming spatial computing market.
