Campfire has raised $3.95 million in seed funding for its AI-driven game engine, Sprites, which lets developers create AI characters with memory and emotions to enhance user engagement in games and apps. The technology powers Campfire’s new game, Cozy Friends, a life simulation where players interact with AI companions.
The funding round was led by Y Combinator and other investors, including FundersClub and gaming entrepreneur Juha Paananen. Campfire’s platform, used by developers like Remio VR, allows for fast integration of AI characters, giving games a competitive edge. The company plans to further commercialize the platform, while expanding its team and monetizing Cozy Friends with subscription-based AI features.
