Roblox acquires Morpheus AI for $44.6M

Morpheus AI was founded in August 2025 as a video world model lab, not a decentralized compute network as some listings describe. Its team, including founder Xun Huang, joins Roblox's Foundation AI team. Huang developed Self Forcing, a technique that turns offline video models into autoregressive systems capable of real-time responses. Trade coverage lists the deal size as not disclosed, so the $44.6M figure appears to rest on Crunchbase alone. The technology feeds Roblox Reality. Video models add textures, lighting and fluid physics, while the Roblox Engine handles structured logic and multiplayer state synchronisation. Roblox is targeting 4K resolution at 60 Hz. An early version of the software is planned for later this year. The founders of Dynamics Lab and Lucid AI joined in late 2025 for the same effort. For AI builders, the deal shows a large platform buying small research teams in real-time generation. Roblox names latency, consistency and quality as the hurdles. Teams that solve one of these can become acquisition targets for platform companies. Prices for such deals are often not public, so reported figures need checking against company statements.