Infinite Reality™ (iR), an innovative company specializing in digital media and e-commerce through extended reality (XR) and artificial intelligence (AI), has announced a definitive agreement to acquire Touchcast, a leader in agentic AI technology, for $500 million in cash and stock. This acquisition marks Infinite Reality’s largest transaction to date and values the company at approximately $15.5 billion.

Touchcast’s AI platform, known as Mentorverse, creates specialized AI mentors that engage users through natural video conversations. Unlike traditional chatbots, these AI mentors possess consistent personalities and deep expertise, providing genuinely helpful guidance. The integration of Touchcast’s technology will enhance Infinite Reality’s existing services, including Napster, iR Studio, and iR Enterprise, allowing users to employ AI agents for various tasks such as customer support and sales.

For instance, within Napster, the Touchcast technology will enable subscribers to craft immersive social listening environments and utilize AI agents for music playlisting and community management. Furthermore, businesses using iR Enterprise and iR Studio will benefit from trained AI agents that enhance customer service and sales functions. Touchcast’s technology is built on Microsoft Azure, supported by a $50 million strategic partnership with OpenAI, and is recognized for significantly improving response times in AI interactions.

John Acunto, CEO and Founder of Infinite Reality, stated that “agentic AI is a big part of how consumers and businesses will interact with the web in the future.” He emphasized the immediate applications of Touchcast’s technology across Infinite Reality’s business portfolio, which would benefit various customer segments, including Napster subscribers, Fortune 500 brands, and small enterprises.

Edo Segal, CEO and Founder of Touchcast, shared his enthusiasm about the merger, highlighting that their mission has always been to humanize AI, evolving beyond chatbots to create intuitive, emotionally resonant experiences. He believes that partnering with Infinite Reality will allow them to scale their technology across various industries effectively.

Amish Shah, Co-Founder and Chief Business Officer of Infinite Reality, remarked that this acquisition is a significant step in their strategic growth plan, building on the momentum from the recent $3 billion funding round and the acquisition of Napster. He emphasized that integrating Touchcast’s agentic AI technology will provide customers with essential tools needed for success in the modern AI-driven landscape.