Japanese company SpiralAI has announced the signing of a strategic partnership with Koei Tecmo and unveiled its next-generation large language model, Geppetto2. The model is positioned as a means to “safely deliver Japanese IP to the world” and is essentially an IP-focused LLM designed for creating and running fictional characters belonging to established franchises.
Founded in 2023, SpiralAI is an AI startup with experience developing character-based conversational AI. Previously, the company developed the rat-themed interactive AI companion app HAPPY RAT, produced by voice actor Yuki Kaji (source: 4Gamer).
As for the new Geppetto2, unlike general-purpose AI models like ChatGPT, it’s positioned as a model specifically designed for for use in entertainment, including video games. It was developed with the goal of overcoming the limitations of prompts, implementing what the company describes as “deep learning of the characters’ core traits,” allowing natural and true-to-character conversations between the user and the character.

According to the announcement, characters built on Geppetto2 will strictly adhere to their predefined fictional backgrounds. For example, they won’t be able to access information they wouldn’t ordinarily be able to know, reducing hallucinations. Additionally, as players engage in dialogue, the character’s relationship with the player is supposed to evolve over time, enabling the AI to express more complex emotions. SpiralAI also plans to implement compatibility for gaming PCs and mobile devices down the line.
In the press release, Koei Tecmo CEO Hisashi Koinuma commented, “We highly value [SpiralAI’s] efforts in leveraging AI to create new forms of entertainment, including the development of character conversational AI apps, and have therefore made this investment. Through this strategic partnership, we will support SpiralAI’s efforts to create new experiences that combine entertainment and AI.” It’s not clear yet whether and in what ways the technology will be used in Koei Tecmo titles.



