Niantic finalized a multibillion-dollar sale of Pokémon Go not long after it acknowledged using player-collected footage to develop an artificial intelligence system capable of interpreting physical environments. The sale to Scopely totals $3.85 billion and includes the entire team behind the game.
The company had introduced a feature in Pokémon Go that allowed creatures to appear within a user’s real-world surroundings. Behind the scenes, this same tool gave Niantic access to detailed visual data. Players who opted into the scanning system unknowingly contributed to what became a large geospatial model made up of more than 50 million neural networks.
Pokemon Go used user cameras to develop an AI Geospacial Model. Can't have any fun without these companies using our data! pic.twitter.com/RoGU2wzsH0
— Bryan S3 (@BrianSoto683799) November 23, 2024
As players explored parks, buildings and other public spaces, the game recorded image sequences. The company said this data was necessary to improve how its system understood objects, surfaces and terrain that couldn’t easily be captured by automated devices. Each week, Niantic reportedly processed around 1 million of these scans.
Niantic's primary goal is corporate, not gameplay. The location and mapping data used to feed their geospacial machine learning model is far more valuable to them than player satisfaction.
That's why they've made countless choices against what players wanted or needed.— David Phoenix (@DavidRMPhoenix1) December 11, 2024
Shortly after those details came to light, Niantic moved to exit the mobile gaming business. In addition to Pokémon Go, it sold Monster Hunter Now and Pikmin Bloom to Scopely, a California-based company owned by Saudi Arabia’s Savvy Games Group. The transaction included a $3.5 billion payment plus an added $350 million investment.
It's official.
Niantic is selling its gaming business to Scopely, within Savvy Games, for a total value upwards of $3.85B.
Pokémon Go, MH Now, Pikmin Bloom.
Big shake-up, consolidation in the space.
Niantic is also spinning out its geospacial AI business into Niantic Spatial. https://t.co/ADkn9ZT6pN pic.twitter.com/4y7vYL0Yqe
— Dom (@DomsPlaying) March 12, 2025
Scopely is already known for apps such as Monopoly Go and Marvel Strike Force, which have drawn attention for including in-game items priced up to $200. Now in charge of Pokémon Go, the company has promised to keep the same team in place, though some longtime players remain wary.
Meanwhile, Niantic is creating a separate company, Niantic Spatial, to advance its AI mapping technology. This spin-off will hold onto Peridot and Ingress, two of Niantic’s original augmented reality titles. The venture is launching with $250 million in funding, with the bulk of it coming from Niantic and a $50 million stake from Scopely.
The company’s senior engineering vice president previously noted that its AI system might be useful in national security scenarios, given its ability to track changes in environments and analyze difficult terrain.
