Reforged Labs Closes Down: The Gap in the Market is Disappearing

After three years of operation, Reforged Labs, an AI startup, is ceasing its activities due to difficulties in expanding beyond the gaming industry. Established in 2023, the company provided AI solutions for mobile gaming, focusing on creative strategy and performance marketing. Its client base included prominent gaming studios such as Supercell, King, Ubisoft, Playtika, and Scopely, with a team of 17 employees across Vietnam and the US. According to co-founder and CEO Robert Huynh, "We invested three years in developing AI-powered creative tools for mobile game studios, which spend over $500 million annually on ads, but this wasn't aligning with our initial vision." Huynh further explained that the market was limited, with only a few large-scale studios capable of signing substantial contracts. Despite attempts to expand into other sectors, the results were not satisfactory. The recent rapid advancements in AI also played a crucial role, as the new models became so sophisticated that Reforged Labs had to significantly rewrite their product. Huynh believes that their clients, who are among the most advanced teams in gaming, will soon be able to develop similar solutions internally. He concluded, "The gap we were targeting is diminishing. Although we could have continued as a smaller business, with real revenue, I prefer a clear closure over a gradual decline." In 2024, Reforged Labs secured $3.9 million in seed funding from DCM, with additional investments from Y Combinator, Epakon Capital, Goodwater Capital, Phoenix Fund, and Asymmetry Ventures, as well as angel investors including Niantic, Pocket Gems, and King co-founder Sebastian Knutsson.