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LONDON - capAI plc (LSE:CPAI) has entered into non-binding heads of terms with R42 Group LLC for Game42, an AI-driven platform that converts written content into interactive gameplay experiences, according to a press release issued Monday.
The proposed transaction remains subject to regulatory approval and execution of a definitive license and option agreement. Game42 is still under development by R42, with delivery of a minimum viable product targeted by December 31, 2025.
Under the proposed terms, capAI would receive an exclusive worldwide license to operate the Game42 platform for 12 months after R42 delivers a completion notice confirming the platform is ready for commercialization. The license carries no upfront payment, and capAI would retain all revenue generated during this period.
capAI would have the option, but not the obligation, to acquire 100% of the Game42 intellectual property during the license period for £2 million in new ordinary shares. If the option is exercised, R42 would also be entitled to 20% of any net proceeds from a future sale or monetization event involving the Game42 IP.
If capAI does not exercise the option within the license period, all rights would revert to R42, including any improvements created by capAI.
The transaction would support the ongoing development of capMedia, the company’s AI-powered media division. The deal follows a similar structure to capAI’s previously announced arrangement for Author42 on July 7.
Professor Ronjon Nag, Executive Director of capAI and Founder of R42, has recused himself from all negotiations and approvals related to the proposed transaction from capAI’s perspective.
The AI in gaming segment was valued at $3.28 billion in 2024 and is projected to grow to $51.26 billion by 2033, according to information cited in the press release.
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