Spacial computing and AI unicorn Infinite Reality announced today that it will acquire agentic AI company Touchcast in a cash and stock deal valued at $500 million.
The purchase is the latest in a long spree of acquisitions by 6-year-old Infinite Reality. Per Crunchbase data, the company has made 10 acquisitions to date, including eight since last April.
Many are rather pricey deals too. Prior to Touchcast, Infinite made headlines in March by agreeing to pay $207 million for the online music brand Napster, best known for introducing peer-to-peer file sharing back in 1999. Infinite Reality says it plans to “transform Napster beyond streaming into a social and interactive music platform.”
The most expensive deal prior to Touchcast, meanwhile, came last July. Infinite agreed to acquire Landvault, a developer of immersive digital environments for brands and companies, in an all-stock deal valued at $450 million.
Infinite Reality’s valuation has been rising along with its appetite for M&A. Last July, the company pegged its valuation at $5.1 billion. Today, with the Touchcast announcement, Infinite says it has a value of $15.5 billion.
The company, which was initially based in Norwalk, Connecticut, and moved to a new headquarters in south Florida, has also been a prodigious fundraiser. In January, it closed on $3 billion in a venture round backed by an unnamed private investor.
Infinite has said its funding approach involves building ties with individual investors and family offices rather than seeking conventional venture funding. However, it did raise a $300 million round last year that included venture firms such as Lerer Hippeau and Lux Capital alongside strategic backers.
With its newest acquisition, Infinite says it sees great potential in Touchcast’s Mentorverse technology, used to create specialized AI mentors who engage in face-to-face video conversations. It’s paying handsomely too, with the acquisition ranking as Infinite Reality’s largest purchase yet.
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Illustration: Dom Guzman
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