Altered State Machine

Based in Auckland, New Zealand, Altered State Machine develops a decentralized protocol that enables users to create, train, and trade artificial intelligence agents as non-fungible tokens for metaverse applications. The company operates with a global workforce of over 100 employees and secured $14 million in seed funding before merging into the metaverse conglomerate Futureverse, which subsequently raised a $54 million Series A round. Its technology allows developers to mint trainable AI brains that power dynamic characters within Web3 gaming ecosystems and digital environments. The enterprise is backed by prominent investors including Warner Music Group and Coinbase Ventures, while maintaining strategic partnerships with global brands like FIFA and Muhammad Ali Enterprises to launch AI-driven mobile games. Altered State Machine was founded in 2021 by David McDonald, Aaron McDonald, Phil Williams, and Hal Smith-Stevens.

High-Level Overview

Altered State Machine (ASM) is a decentralized protocol enabling users to own, train, and trade AI agents as NFTs, primarily for metaverse, gaming, and AI applications.[1][2][3] It powers the creation of ASM Brains—unique, trainable AI entities represented as NFTs—that integrate into games, virtual worlds, financial apps, and avatars, solving the lack of intelligent, ownable NPCs in metaverses by allowing AI evolution through genomic mining and machine learning in an "Artificial Intelligence Gym."[1][3][4] ASM serves developers, gamers, and organizations building immersive experiences, with its ASTO token driving governance, training, minting, and play-to-earn economies; it has shown growth via a 2022 seed round backed by Coinbase Ventures, Warner Music Group, and others, plus integration into games like Muhammad Ali | The Next Legends and a merger into Futureverse.[3]

Headquartered in Auckland, New Zealand, with over 100 global staff, ASM emphasizes open-source tech for an inclusive metaverse where AI value flows to contributors.[2]

Origin Story

ASM was founded in 2021 by brothers Arron and David McDonald, alongside Phil Williams and Hal Smith-Stevens, who aimed to bridge AI with blockchain for ownable intelligence.[1][4] The idea emerged from recognizing NFTs' limitations as static assets, evolving them into dynamic AI agents with personality for metaverses lacking vibrant NPCs.[4] Early traction came via a proof-of-concept game, *Artificial Intelligence Football Association*, and expansion to applications like the Muhammad Ali boxing game, culminating in a seed raise from 17 investors including TCG and Coinbase Ventures in March 2022, plus a merger with 10 companies to form Futureverse.[3][4]

Core Differentiators

• Ownable, Trainable AI via NFTs: Users mint, train, and trade ASM Brains (neural network-based AI with unique genomes) that pair with avatars for interchangeable agents, enabling personalized growth unlike static NFTs.[1][2][3][4]
• Decentralized Training Protocol: "Artificial Intelligence Gym" uses world-specific ML models for agent improvement, powered by genomic and intelligent mining for unique outcomes.[1][3]
• Interoperable Ecosystem: Agents deploy across games, metaverses, finance, and virtual assistants, with ASTO token utility for minting, governance, staking, play-to-earn, and liquidity.[2][3][4]
• Patented Tech and Backing: Holds 4 patents in data types, units, and protocols; merged into Futureverse for scaled resources.[1][3]

Role in the Broader Tech Landscape

ASM rides the AI-metaverse convergence trend, timing perfectly with NFT evolution, blockchain interoperability, and demand for autonomous agents in Web3 gaming and virtual worlds.[1][2][3] Market forces like rising play-to-earn models, decentralized AI ownership, and metaverse growth favor it, addressing NPC intelligence gaps for richer experiences while democratizing AI via NFTs—positioning ASM as a leader in "AI for everyone."[3][4] It influences the ecosystem by open-sourcing protocols, fostering contributor value flow, and enabling multi-agent commerce, competing with Virtuals Protocol and Soul Machines.[1]

Quick Take & Future Outlook

ASM is poised to expand via Futureverse synergies, deeper game integrations, and ASTO-driven economies amid AI agent proliferation in Web3.[3] Trends like multi-agent AI coordination, metaverse maturity, and tokenized intelligence will propel it, potentially evolving influence through broader NFT-AI standards and DAO governance.[2][4] As the ownership layer for trainable AI, ASM could redefine metaverse vibrancy, looping back to its core promise of empowering users with intelligent, monetizable agents.[1][3]