Take-Two Interactive Disbands Internal AI Division Amid Strategic Shifts

Take-Two Interactive shuts down its internal AI team despite CEO's recent praise for generative AI, highlighting strategic contradictions as GTA VI launch nears.

Take-Two Interactive Software, the prominent video game publisher, has disbanded its internal artificial intelligence division. The move, confirmed in early April, saw the departure of Head of AI Luke Dicken and several team members, as indicated by Dicken’s LinkedIn announcement. This decision highlights apparent contradictions within the company's broader AI strategy.

Management's Mixed Messaging on AI

The dissolution presents a stark contrast to recent corporate statements. As recently as February 2026, CEO Strauss Zelnick publicly asserted that Take-Two was "actively embracing generative AI," citing hundreds of ongoing pilot projects and implementations across its studio network. However, Zelnick has consistently expressed skepticism regarding the creative capacity of AI tools. He has previously dismissed the notion that AI could create a title like Grand Theft Auto as "ridiculous," and specifically stated that generative AI played "no part" in the development of the highly anticipated Grand Theft Auto VI.

According to a senior director from the now-disbanded team, the closure resulted from "shifting priorities within upper management." The unit, which focused on applying language and diffusion models to optimize development workflows, had only been established following Dicken's hiring in January 2025.

This organizational change occurs during a period of significant investment tied to the upcoming launch of GTA VI, a project carrying substantial capital requirements. It follows a broader cost-cutting initiative from April 2024, where Take-Two eliminated approximately 550 to 600 positions, equating to roughly five percent of its workforce.

Market Analysts Maintain Positive Outlook

The strategic shift has done little to dampen analyst confidence. On April 6, Wells Fargo adjusted its price target for Take-Two stock only slightly, lowering it from $295 to $293, while maintaining an "Overweight" rating. The firm considers concerns related to mobile third-party data to be largely unfounded. For the upcoming fourth-quarter results, Wells Fargo anticipates a subdued setup, suggesting that initial guidance for fiscal year 2027 may be conservative.

The broader analyst consensus remains bullish. The average price target across 30 covering analysts stands at $274.20. Based on a recent closing price of $195.85, this implies an upside potential of approximately 40 percent. A consensus recommendation from 31 brokerages is "Outperform." Strengthening engagement metrics for NBA 2K and anticipated growth in the mobile segment are cited as key supports for revenue and EBITDA estimates for 2027.