AI Startup Game State Labs Secures $2 Million Seed Funding
Game State Labs, a cutting-edge AI startup transforming the gaming industry, has just raised $2 million in a seed funding round co-led by PeerCapital and Neon Fund. The startup plans to use the capital to scale globally, expand its engineering and go-to-market teams, and push the boundaries of AI in gaming.
Founded in 2025 by Aashbir Bhatia, Ashwin Ramakrishnan, and Jagveer Gandhi, Game State Labs is on a mission to help game studios extract maximum value from their first-party player data.
“We Are Changing How Games Understand Players”
“Our vision is to help gaming studios maximise the value of their first-party data,” said co-founder Aashbir Bhatia. He added that while studios have always collected data, the tools to use it effectively have lagged behind. “By allowing AI to understand both player actions and player state, we are helping studios build systems that increase lifetime value and return on ad spend,” Bhatia explained.
Game State Labs is initially offering three main products: faster and deeper player insights, predictive analytics, and hyper-personalization—all aimed at giving studios unprecedented control over player engagement.
Investors Are Betting Big on the AI Gaming Revolution
Karthik Prabhakar, Managing Partner at PeerCapital, praised the team’s approach, stating, “The team is solving one of gaming’s most persistent challenges with remarkable clarity. Their approach to contextual AI and data infrastructure is both technically ambitious and commercially grounded. We believe they can redefine how the industry thinks about personalization and player intelligence.”
Siddhartha Ahluwalia, Managing Partner at Neon Fund, added, “The gaming industry is entering a stage where data infrastructure will define competitiveness. Game State Labs has built an elegant way to translate player behavior into measurable outcomes for studios. Their product sits at the intersection of AI, data, and user experience, and that is a space we understand deeply.”
Aiming for Global Impact
Game State Labs is already working with early partner studios to deploy its platform in live games. Over the next year, the startup plans to strengthen integrations with leading game engines, expand into new markets, and deepen its AI capabilities—promising to redefine how gaming studios interact with and monetize player behavior.
The founders’ bold claim? “We are changing the way games understand and engage players, and this is just the beginning.”