Take-Two Interactive has reportedly eliminated its entire AI division, including head of AI Luke Dicken and multiple team members, according to LinkedIn posts from affected employees. The decision marks a significant shift in the company's organizational structure, particularly given the gaming industry's ongoing discussions about the role of artificial intelligence in game development.
"It's truly disappointing that I have to share with you that my time with T2—and that of my team—has come to an end," Dicken wrote in a post yesterday. The Rockstar Games and Zynga parent company declined to comment when contacted, leaving many questions unanswered about the reasoning behind the dissolution of what appeared to be a strategically important division.
Dicken, who spent over a decade at Zynga before becoming Take-Two's head of AI in January 2025, said he plans to share a fuller reflection on his tenure next week. For now, he's focused on helping his displaced colleagues find new roles across seven areas of expertise affected by the cuts. His brief tenure as head of AI—less than a year—suggests the decision may have been driven by recent strategic reassessments rather than long-term performance issues.
"We've been developing cutting edge technology to support game development now for 7 years," Dicken explained. "These folks know how to match innovation and novel problem solving approaches with strong product design chops to create systems that empower people throughout the development workflow." His comments highlight the team's focus on practical applications of AI technology, emphasizing tools designed to assist developers rather than replace them—a distinction that has become increasingly important in industry conversations about AI adoption.
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Take-Two's senior director of AI development echoed Dicken's sentiments in a separate LinkedIn post. "Over the past 6 years—first leading Zynga's game services division in central tech, then spending the last 2 years building out the AI team at Take-Two—we pushed the edge of what's possible, applying emerging technologies to real game development problems. That chapter has come to a close, as shifting priorities from upper management have impacted my team and me." The reference to "shifting priorities" suggests the layoffs reflect a change in corporate strategy rather than dissatisfaction with the team's work.
At least four additional employees confirmed their departures on LinkedIn, including the director of AI research, a senior manager of site reliability engineering, and two senior data scientists. The breadth of roles affected—spanning research, engineering infrastructure, and data science—indicates the elimination was comprehensive rather than targeted at specific functions within the AI division.
The layoffs come despite Take-Two's public embrace of AI technology. In February, president Karl Slatoff told investors the company is "actively embracing" generative AI to "drive efficiencies" and "reduce costs," though he dismissed comparisons between Google's Genie tool and traditional game engines. CEO Strauss Zelnick has similarly positioned AI as central to the company's innovation strategy, though generative AI remains deeply unpopular among game developers.
The apparent contradiction between executive statements and the elimination of the AI division raises questions about how Take-Two plans to pursue its stated AI strategy moving forward. The company may be shifting from maintaining a dedicated internal AI research and development team to leveraging third-party AI tools and services, or integrating AI capabilities directly into existing development teams rather than maintaining a separate division.
"Just a reminder, our strategy has three parts: be the most creative, be the most innovative and be the most efficient company in the entertainment business," Zelnick said during the company's latest earnings call. "And generative AI squarely falls within the category of innovation and is already moving into the category of efficiency." These comments, made before the layoffs became public, underscore the disconnect between the company's stated commitment to AI innovation and the decision to dismantle its dedicated AI team.
The cuts follow what Take-Two described as an "outstanding" quarter, with net bookings reaching $1.76 billion for the period ending December 31, 2025. Zynga properties drove much of that success—Toon Blast grew 43 percent year-over-year and surpassed $3 billion in lifetime net bookings. The strong financial performance makes the timing of the layoffs particularly notable, as companies typically cite cost-cutting measures during periods of financial difficulty rather than record-breaking quarters.
"Our execution throughout Fiscal 2026 has been extraordinary and we are highly confident as we approach Fiscal 2027—which promises to be groundbreaking for Take-Two and the entire entertainment industry—led by the November 19 release of Grand Theft Auto VI with Rockstar's launch marketing set to begin this Summer," Zelnick said. The upcoming release of one of gaming's most anticipated titles may factor into the company's resource allocation decisions, as Take-Two focuses its efforts on ensuring a successful launch while streamlining other operations.
The dissolution of Take-Two's AI division adds another data point to the complex and sometimes contradictory relationship between the gaming industry and artificial intelligence technology. While many companies continue to invest heavily in AI capabilities, the practical implementation and organizational structure for these initiatives remains in flux across the industry.