discovery permanence

discovery
permanence

An AI game lab.

Kyle Smith, founderTorontokyle@clayhouse.studio

mission

Invent new ways to play and make games through AI innovation.

Costs keep rising, so games keep repeating

the problem

Every new idea is a bigger bet

Budgets keep growing, so studios make more of what already sold.

our answer

Small teams, cheap tries, AI at the core

We prototype small, test with players, and only spend on what they prove.

why now

AI is already making hits.

14M

copies of ARC Raiders sold, with AI-trained robots and AI voices

Game Developer, February 2026

#1

most-subscribed channel on Twitch: Neuro-sama, an AI streamer made by one developer

Dot Esports, January 2026

20M

players for Death by AI in 3 months, a game built in 10 weeks

TechCrunch, January 2025

Our bet

against the power law

Many small wins over one unicorn

VC needs every bet to be a unicorn. We build many profitable games and tools, and grow the winners.

The zebra model: Zebras Unite, 2017

with AI

Build with AI while most are against it

52% of developers say AI hurts games, yet 36% use it. The value to players and developers is obvious, so we build it into play, openly.

GDC State of the Game Industry, January 2026

against the crowd

When everyone does heaven, do hell

In 1992, with comics full of clean-cut heroes, Todd McFarlane made a hero from Hell: Spawn. Then everyone followed.

Spawn #1, Image Comics, 1992

Pillars

New fun

Use AI to create play that wasn’t possible before: new things to do, feel and master.

Better making

Use AI to change how games are made, so small teams build more, faster and more boldly.

Radical thinking

Radical experiments that change how games are built and played.

A lab and venture studio

team

A small, permanent senior team

prototypes

Several contractors for prototypes

games

Genre, platform and audience agnostic. Best ideas win; PC hits go to console

funding

Open to any funding mechanism

spinouts

A project spins out, alone or as a joint venture, only when it lands a big funding or publishing partner, or earns good revenue

revenue

Direct revenue from projects we keep, plus licensing our tech and game innovations

Picking a project

for the player

A novel purpose

Something players can’t get today, with real commercial value.

for AI

A novel experiment

A new approach that improves play or what developers can do.

for the player

we build here

for AI

How we work

Find new fun fast and cheap, with AI in the making and in the play.

find

1 week

A familiar genre plus one new mechanic

Agents scan Steam data for the gap

build

2 to 4 weeks

The smallest playable version

Coding agents let a few people build it

test

weekly, then public

Real players early, then a public demo

Self-play bots play it thousands of times

decide

at every gate

Numbers set first. Most ideas stop here

Automated checks, not AI opinions

Self-play is now cheap. An RTS bot for Generals.io taught itself to #1 on the public 1v1 ladder in 4 days, on 4 GPUs. arXiv, June 2026

Current projects

Seven projects. These three first; the rest are below and on the projects page.

lab projects

Mob Machine: watch AI agents build a game studio and free games, and fund the card you want built nextMob Machine: the team page, the AI agents that run the studioMob Machine: the roadmap of cards the studio plans to build

Radical thinking

Web

MOB MACHINE

A community-driven, AI-run studio and its games

Live

A game studio run and grown entirely by self-recursive learning agent swarms, with community-funded games. It only runs when funded.

Visit Mob Machine

pitch

prototype

demo

live

Funerator mockup: a feed of AI-made games on desktop and phone, with trending games and a prompt to make your own

Radical thinking

Desktop and mobile

funerator

TikTok for making and playing trending AI-generated games

Concept

Swipe through games made with AI from what’s trending, play them right in the feed, and make your own from a prompt.

pitch

prototype

demo

live

Bloodhounds mockup: an agent questions a handcuffed suspect across a table, with goals, suggested questions, his file and hold to speak

New fun

PC and console

BLOODHOUNDS

An FBI detective game built on real psychology and criminal law

Concept

Agents generate each case, the suspects and every conversation. You question suspects by voice, work your leads and build the case.

pitch

prototype

demo

live

the hub, called Breach

A public home for play in Toronto.

Toronto’s hubs serve business and science. We add the consumer, entertainment and interactive layer, where people and AI make games together.

Concept of the Toronto flagship: a lit brick warehouse with a glass rooftop at dusk, people playing inside and on the patio, the CN Tower behind
concept: Breach, the Toronto flagship

28%

of game developers laid off in two years. We pay residents to make their own games.

GDC State of the Game Industry, 2026

14.5%

of young people in Toronto who want work can’t find it. We give them paid first jobs.

Statistics Canada, August 2026

23%

of downtown Class B/C offices sit empty. We turn empty offices into places to play.

CBRE, Q2 2026

Toronto first, then the EU

Events first, a small studio second, a flagship only once it pays for itself.

No building

now to mid 2027

Monthly play nights in partner venues and a residency pilot of three

Next step once three labs sign

A small studio

mid 2027 to 2028

5,000 sq ft in Toronto, five paid residents a year, EU pop-ups

Next step after four quarters of break-even

Flagship and an EU base

2029 on

A public floor in Toronto and a base in the EU, joined online by Mob Machine

Judged on jobs, paid placements and free public visits

Grants stay under a third of the budget. Partner labs, memberships, playtests and tickets pay the rest. People are paid and credited, data is opt-in, and residents keep their IP.

Kyle Smith, founder

Kyle Smith

experience

20+ years in games

founder

3× founder, $8M+ in venture funding raised, teams of 150+ managed

EA

Lead Designer. Created EA Playground

TreasureHunt

Shipped Trolls Pop, a Google Play Award winner, on DreamWorks and Universal IP

Mirage Interactive

Published Meta Apes

the ask

Seeking our first investors, partners and team members.

Investors

Backing for the lab, through any funding mechanism.

Partners

Publishers, platforms and studios to co-develop a project or take one into a joint venture.

Team members

Senior people for the permanent team, specialists for prototypes.

kyle@clayhouse.studio

discovery
permanence

Kyle Smith, founder

kyle@clayhouse.studio