Netease Responds to Suda 51's Claims on Generative AI Usage (2026)

Hold on to your keyboards, gamers and tech enthusiasts! The gaming world is buzzing with a heated debate over NetEase's stance on generative AI, and the truth might surprise you. While renowned developer Suda 51 claimed that NetEase shut down its AI department and banned its studios from using AI, the company is now firing back, calling these statements flat-out false. But here's where it gets controversial: despite NetEase's denial, the question remains—why would such a rumor gain traction in the first place? Could there be a grain of truth hidden in the speculation, or is this simply a case of miscommunication?

A NetEase spokesperson has clarified to Eurogamer that the company is not only continuing its work with generative AI but is also set to host a talk on the subject at the upcoming Game Developers Conference (GDC). “The idea that we’ve closed an AI department or prohibited our teams from using AI is simply untrue,” the spokesperson emphasized. This directly contradicts Suda 51’s earlier claims during an interview about Grasshopper Manufacture’s upcoming game, Romeo is a Dead Man. Suda stated, “They folded their AI research section and told their studios to avoid using AI in games altogether.” He speculated that the decision might have been driven by gamer backlash against AI or concerns over copyright infringement, though he admitted these were assumptions.

And this is the part most people miss: NetEase’s commitment to AI research seems unwavering, as evidenced by their upcoming GDC presentation. Meanwhile, Suda 51’s comments highlight a broader industry tension—the delicate balance between innovation and preserving the human touch in game development. Suda himself expressed skepticism about AI, suggesting that players can instinctively detect when something feels “off” about AI-generated content. “It’s the human effort that draws people to Grasshopper games,” he noted, “and that’s something we’re proud of.”