Beleaguered video game giant Electronic Arts has agreed to a $55 billion acquisition that will take the company private. Saudi Arabia Public Investment Fund (PIF), Silver Lake and Affinity Partners have reached a deal to buy EA, the company said in a statement.Some details about the proposed arrangement surfaced over the weekend. The deal, the largest-ever leveraged buyout, according to Bloomberg, marks the end of EA's 35-year run as a publicly traded company. Our creative and passionate teams at EA have delivered extraordinary experiences for hundreds of millions of fans, built some of the world's most iconic IP, and created significant value for our business," EA CEO Andrew Wilson said in a statement. "This moment is a powerful recognition of their remarkable work."EA hasn't been immune from the forces that have upended the games industry. Last year, the company laid off more than 650 employees, which it labeled an attempt at "streamlining" its business. This year, the company has canceled an upcoming Black Panther game and closed the studio behind it, and has reportedly "shelved" its Need For Speed Franchise.The company said it expects the deal to close sometime in the first quarter of 2027, noting that it will need regulatory approvals. EA said that Wilson will continue as CEO and that its Redwood City, California headquarters will not change. In a statement Silver Lake Co-CEO Egon Durban said that the group plans to "invest heavily" in the video game company and help it "expand its reach worldwide." Silver Lake is also part of the forthcoming deal to spin off the US version of TikTok into a new, American-owned company.

Electronic Arts has announced a new partnership with Stability AI, the creator of AI image generation tool Stable Diffusion. The company will "co-develop transformative AI models, tools, and workflows" for the game developer, with the hopes of speeding up development while maintaining quality."I use the term smarter paintbrushes," Steve Kestell, Head of Technical Art for EA SPORTS said in the announcement. "We are giving our creatives the tools to express what they want." To start, the "smarter paintbrushes" EA and Stability AI are building are concentrated on generating textures and in-game assets. EA hopes to create "Physically Based Rendering materials" with new tools "that generate 2D textures that maintain exact color and light accuracy across any environment."The company also describes using AI to "pre-visualize entire 3D environments from a series of intentional prompts, allowing artists to creatively direct the generation of game content." Stability AI is most famous for its powerful Stable Diffusion image generator, but the company maintains multiple tools for generating 3D models, too, so the partnership is by no means out of place.It helps that AI is on the tip of most video game executives' tongues. Strauss Zelnick, the head of Grand Theft Auto publisher Take-Two, recently shared that generative AI "will not reduce employment, it will increase employment," because "technology always increases productivity, which in turn increases GDP, which in turn increases employment." Krafton, the publisher of PUBG: Battlegrounds, made its commitment to AI even more clear, announcing plans on Thursday to become an AI-first company. Companies with a direct stake in the success of the AI industry, like Microsoft, have also created gaming-focused tools and developed models for prototyping.The motivations for EA might be even simpler, though. The company is in the midst of being taken private, and will soon be saddled with billions in debt. Theoretically cutting costs with AI might be one way the company hopes to survive the transition.This article originally appeared on Engadget at https://www.engadget.com/gaming/ea-partners-with-the-company-behind-stable-diffusion-to-make-games-with-ai-222253069.html?src=rss