On January 9, 2026, Cygames announced that it established Cygames AI Studio, a subsidiary that will develop and provide generative AI-based tools and services. The website for Cygames AI Studio is available in both English and Japanese.
The announcement on Cygames’s official website provided background on why it set up the subsidiary. The company statement claimed generative AI is an important technology that has the power to use accumulated ideas to power the creation of new ones. Cygames AI Studio will use the company’s game development experience to build generative AI tools that “creators” could use “safely and securely.” It also said that it will research and develop its own model, as well as provide generative AI services and tools for game developers. The announcement also claimed a goal is to “build a unique creative cycle to expand on the creators’ creativity.”
Cygames is currently recruiting for its AI Studio. Openings include engineers for language models and picture generation. These are full-time jobs that would require the person to live in or move to Japan.
Reactions to the announcement on Twitter have been largely negative. English replies and QRTs call Cygames out of touch, as well as point out established issues with generative AI like art theft. Japanese users are also against this. There has been more and more backlash against generative AI since 2025. In December 2025, the Indie Game Awards stripped Clair Obscur: Expedition 33 of its GOTY wins after it came out that the studio had used generative AI in development and launched with those genAI assets until they were patched out.
Cygames had a good reputation in 2025 with the global release of Umamusume: Pretty Derby, which also won Best Mobile Game at the Game Awards 2025.