Niantic Spatial spin-off nets $250m funding after Scopely acquisition

Niantic is spinning off its geospatial AI business into a new company called Niantic Spatial, following a deal to sell its games business to Scopely for $3.5 billion.

Parting ways from Pokémon Go, Monster Hunter Now and Pikmin Bloom – in addition to their associated teams – the new company aims to build AI-powered tech that helps people better understand, navigate and engage with the physical world.

This goal will be powered by $250 million in funding, with $200m coming from Niantic’s balance sheet and the remaining $50m from Scopely.

Niantic Spatial is to be led by current Niantic CEO John Hanke. All original investors will continue to be shareholders in the new company.

Spatial spinoff

Niantic’s AI and XR suite Spatial first launched last year. Rather than games specifically, the platform provides tools and services designed for various industries like construction and tourism.

The company isn’t completely abandoning games following the Scopely deal, however, as it will keep ownership of Ingress Prime and Peridot.

“We’re in the midst of seismic changes in technology, with AI evolving rapidly,” Hanke posted on LinkedIn.

“Existing maps were built for people to read and navigate but now there is a need for a new kind of map that makes the world intelligible for machines, for everything from smart glasses to humanoid robots, so they can understand and navigate the physical world.

“Niantic is building the models that will help AI move beyond the screen and into the real world. With $250m in funding, some of the world’s best geospatial AI talent, access to proprietary data, a strong customer pipeline and a rapid product cycle, I believe Niantic Spatial is poised to succeed and, like the games that gave birth to it, to make its own positive impact on the world.”