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Xterio Partners with Reka to Build Emotionally Intelligent AI Agents for Gaming and Beyond

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In an era where artificial intelligence is reshaping
industries, Xterio is taking a bold step forward by partnering with Reka, a
leading AI startup, to develop emotionally intelligent AI agents that promise
to transform gaming, Web3, and beyond. These agents, powered by a proprietary
emotion engine, are designed to interact, adapt, and evolve like human
companions—offering more than just utility.

While AI has long played a role in gaming, from NPC behavior
to immersive storytelling, Xterio and Reka are pushing the boundaries of what’s
possible. Their joint effort aims to create AI companions that can read and
respond to emotions, delivering nuanced interactions that feel personal,
empathetic, and profoundly human.

“We’re building AI agents that are not just functional but
fundamentally transformative in how they connect with users,” said Michael
Tong, CEO at Xterio. “Our partnership with Reka allows us to integrate
cutting-edge emotional intelligence into our products, creating experiences
that evolve alongside users in meaningful ways.”

Revolutionizing Interaction with AI

At the heart of this collaboration is an advanced emotion
engine developed by Reka, a company founded by researchers from DeepMind,
Google Brain, and FAIR. The engine enables Xterio’s AI agents to interpret and
respond to human emotions authentically, making them ideal for gaming, personal
productivity, and emotional support.

Xterio envisions a future where its AI agents extend to
support a wide array of user actions, including on-chain trading, investing,
and portfolio management. These agents will not only serve as emotionally
intelligent companions but also act as practical allies, seamlessly managing
tasks and providing valuable insights tailored to the owner’s needs.

Xterio first introduced its conversational AI technology
during the “Meet Your Anima” event in April 2024. This Web3-based
experience allowed users to engage in emotional dialogues with a digital
pet-like AI, sparking widespread acclaim and over 1 billion input tokens
processed. The success validated Xterio’s vision of blending emotional depth
with advanced AI capabilities.

Building on that momentum, Xterio is set to launch
“Befriend”, a gamified event where users interact with AI agents in scenarios
that playfully explore AI connections. Participants will not only experience
the latest advancements in conversational AI but also compete for rewards in a
uniquely engaging experiment.

A New Standard for AI Companionship

What sets Xterio’s AI agents apart is their adaptability and
trustworthiness. Operating on blockchain technology, these agents have on-chain
ownership provenance and provide transparency in every interaction. Beyond
gaming, Xterio envisions applications in education, mental health, and
productivity, where AI agents can become true partners in daily life.

“Imagine an AI companion that evolves with you—offering
emotional support, meaningful conversations, and tailored experiences,” said
Dani Yogamata, co-founder and CEO of Reka. “This partnership with Xterio brings
cutting-edge AI technologies to life in ways that are both entertaining and
profoundly human.”

Positioning for the Future of AI and Web3

Xterio’s partnership with Reka also underscores its broader
ambitions in the Web3 ecosystem. By integrating blockchain technology with
advanced AI, the company is creating a secure and decentralized framework for
training and deploying its emotional engines. Users contribute to AI
development through interactions, with full confidence that their data remains
private and under their control.

Upcoming projects like “Palio”, Xterio’s first AI-native
game slated for Q1 2025, promise to blend conversational AI with trading
mechanics, showcasing the versatility of this technology.

The Industry Impact

The Xterio-Reka collaboration highlights a broader trend:
the race to create AI that doesn’t just act smart but feels human. Emotional AI
is poised to become a critical component of user engagement across gaming,
Web3, and enterprise applications. For Xterio, it’s a way to stand out in a
competitive landscape by delivering experiences that resonate deeply with
users.

“As AI continues to evolve, the line between technology and
human connection is blurring,” said Michael Tong. “At Xterio, we’re not just
building products—we’re shaping the future of interaction.”

About Xterio

Xterio Foundation (https://www.xter.io/), based in
Switzerland, was established by a Council and a team of seasoned technology and
entertainment leaders with extensive free-to-play gaming expertise. Its mission
is to develop, publish, and distribute premium interactive experiences at the
intersection of blockchain and AI.

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