Take-Two Interactive lays off entire AI team, including head Luke Dicken

Take-Two Interactive, parent of Rockstar Games, has laid off its entire AI team, including head Luke Dicken, who announced the move on LinkedIn. The decision follows CEO Strauss Zelnick's recent skepticism about AI's creative potential and contrasts with peers ramping up investments in the technology. The company declined to comment.

Luke Dicken, head of Take-Two's AI division, announced on LinkedIn that his seven-year tenure—and that of his entire team—has ended, describing it as 'truly disappointing.' The team developed cutting-edge technologies, including procedural content generation and machine learning, to support game development workflows. Dicken, who previously spent a decade at Zynga as senior director of applied AI, is now seeking new roles for his staff and has launched LuDic AI, a consulting service for AI best practices in games and adjacent sectors. The layoffs were first spotted by Game Developer. Take-Two, known for Grand Theft Auto via Rockstar Games, did not respond to requests for comment and is preparing for Grand Theft Auto VI. Previously, CEO Strauss Zelnick expressed optimism about generative AI boosting productivity and jobs. However, he recently downplayed its threat to creativity, stating, 'Every entertainment business that was supposed to be destroyed by new technology hasn't been,' citing calculators that did not end math education. This stance differs from companies like Krafton, Square Enix, and EA, which have increased AI investments, including replacing human roles in translation and art.

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Dan Houser on TV show skeptically discussing AI limitations in game development, with contrasting AI glitch art and Rockstar game visuals.
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Dan Houser calls AI overhyped in game development

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Rockstar Games co-founder Dan Houser expressed skepticism about AI's capabilities during a TV appearance promoting his new novel. While confirming his studio is experimenting with the technology for an upcoming game, he downplayed its current usefulness. Houser emphasized that AI excels at some tasks but falls short of solving all creative challenges in gaming.

Take-Two Interactive CEO Strauss Zelnick has reiterated that AI cannot produce massive hits like Grand Theft Auto 6, calling the notion laughable. In a recent interview, he emphasized the need for human creativity despite AI's potential to assist in asset creation. Zelnick expressed surprise at market reactions to AI tools like Google's Genie.

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Take-Two Interactive's shares fell 7.9% on January 31, 2026, following Google's unveiling of Project Genie, an AI tool for generating interactive worlds. The decline occurred ahead of the company's fiscal third-quarter earnings report scheduled for February 3. Investors are concerned about AI's potential impact on game development.

At the Game Developers Conference 2026 in San Francisco, generative AI tools drew mixed reactions, with demos from Google highlighting potential uses amid widespread developer skepticism. A recent industry report showed 52% of companies using the technology, but only 36% of workers incorporating it into their jobs, and 52% viewing it as harmful to the sector.

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Google has introduced a new AI 'world model' known as Project Genie, which is already influencing the games industry. However, it draws criticism for aspects of artificial intelligence that some dislike. The development was highlighted in a TechRadar article published on February 2, 2026.

In response to backlash over generative AI use in early development of its next Divinity game, Larian Studios—creators of Baldur's Gate 3—will host a fan Q&A session after the holidays to discuss the issue amid industry-wide debates.

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Australian software firm Atlassian announced layoffs of about 1,600 employees, or 10% of its workforce, to invest in artificial intelligence and enterprise sales. The restructuring aims to rebalance resources for the AI era in teamwork. Company shares rose nearly 2% in extended trading after the news.

 

 

 

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