Electronic Arts Reportedly Looks to AI to Slash Expenses Under New Ownership

Electronic Arts, the company behind popular games like Madden NFL, Battlefield, and The Sims, is set to be bought by a group of investors in the largest private equity-backed buyout ever.

The deal is valued at $55 billion and includes Saudi Arabia’s sovereign wealth fund, Silver Lake Partners, and Affinity Partners, which is managed by Jared Kushner, President Donald Trump’s son-in-law. EA shareholders will receive $210 per share.

The Saudi Public Investment Fund (PIF), already the largest insider shareholder in EA, will roll over its 9.9% stake in the company.

According to Andrew Marok of Raymond James, PIF has been active in the gaming industry since 2022, taking stakes in major companies and buying firms like ESL, FACEIT, and Scopely. “The PIF has made its intentions to scale its gaming arm, Savvy Gaming Group, clear, and the EA deal would represent the biggest such move to date by some distance,” Marok wrote.

The deal follows last week’s leak of the buyout and is expected to close in early 2027, pending shareholder and regulatory approval. EA CEO Andrew Wilson will stay in his role for the time being.

The Financial Times reports that the new owners plan to use artificial intelligence to cut costs and manage EA’s debt.

This could include AI playing a bigger role in game development, potentially replacing some developers and actors, though details are not yet clear. This comes just months after the formation of the United Videogame Workers Union, partly in response to AI and recent layoffs in the gaming industry.

“The investors are betting that AI-based cost cuts will significantly boost EA’s profits in the coming years,” the Financial Times wrote. They added that the deal is “a huge bet that artificial intelligence can significantly cut EA’s operating costs, allowing the equity consortium to manage a large debt load on a company that historically carried limited net debt.”

EA has already been investing in generative AI through its Search for Extraordinary Experiences Division. CEO Andrew Wilson said in May 2024 that AI has made game development faster and more efficient. “We’ve moved from being able to create stadiums in six months to six weeks,” he said, referring to their licensed football games. He added that AI helps developers “get to the fun more quickly.”

However, efficiency doesn’t always mean preserving jobs. EA has already reduced staff in recent years, cutting about 5% of its workforce in 2024, around 670 employees, and later letting go another 300 people while closing one of its new studios.

The Saudi-led buyout also raises questions about how working under investors from a country with a controversial human rights record could affect employees. Regulatory approval may be lengthy, similar to Microsoft’s acquisition of Activision Blizzard, which faced years of scrutiny from the U.S. Federal Trade Commission.

For EA developers, the future may bring major changes as AI becomes a bigger part of game creation and the company shifts to private ownership.

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