Take-Two Interactive has reportedly laid off members of its internal artificial intelligence division, raising fresh questions about the company’s long-term strategy around generative AI in game development.
The news surfaced on April 2, when former Head of AI Luke Dicken announced his departure. In his statement, Dicken indicated that multiple members of his team were also affected by the cuts. While exact figures have not been disclosed, the wording suggests that a significant portion—potentially the entire AI group—has been impacted.
As of now, Take-Two has not released an official explanation regarding the layoffs.
From Zynga Acquisition to AI Leadership
Dicken’s role within Take-Two traces back to the company’s acquisition of Zynga in 2022. Prior to the acquisition, he established an AI-focused team within Zynga, later advancing to Senior Director of AI.
By 2025, he had taken on the role of Head of AI at Take-Two, overseeing efforts to integrate machine learning and generative tools into development pipelines. The company maintained a dedicated AI division throughout at least early 2025, signaling a clear investment in the technology.
These layoffs now cast doubt on how central that investment remains.
Mixed Messaging From Leadership
Take-Two’s leadership has delivered conflicting signals about the role of AI in its future.
CEO Strauss Zelnick has previously told investors that the company is “all in” on generative AI, suggesting strong internal commitment. At the same time, he has publicly criticized the technology’s broader impact, even describing AI as an “oxymoron” in early 2025.
He also stated that AI would not be used as a driver for job cuts—a position that now appears at odds with the current layoffs.
This contrast between public messaging and internal actions is likely to fuel further scrutiny from both industry observers and the wider development community.
Part of a Larger Cost-Cutting Pattern
The AI layoffs come amid a broader trend of cost reduction within Take-Two.
In 2024, the company implemented a 5% workforce reduction and closed a studio as part of a plan aimed at saving approximately $165 million. These measures were framed as efficiency improvements rather than strategic pivots.
The latest cuts could be interpreted as an extension of that effort, rather than a direct rejection of AI. However, without an official statement, the exact motivation remains unclear.
What This Means for AI in Game Development
The situation highlights the ongoing uncertainty surrounding generative AI in the gaming industry.
Publishers continue to explore AI for tasks such as procedural content generation, automation, and development efficiency. At the same time, concerns about job security, creative control, and long-term value persist.
Take-Two’s decision adds another layer to that debate. Whether this move represents a step back from AI investment, a restructuring of internal priorities, or simply another cost-saving measure is still unknown.
What is clear is that the industry’s relationship with AI remains unsettled—and decisions like this will continue to shape how studios approach the technology moving forward.
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