Take-Two disbands AI team; ex-Halo art director alleges harassment at Microsoft
Two high-profile moves have jolted the gaming industry: Take-Two Interactive has quietly dismantled its artificial intelligence division, and a former Halo art director has accused Microsoft of harassment and retaliation. Take-Two, the publisher behind Grand Theft Auto VI, disbanded its AI unit, including its head and several team members.
The decision comes despite CEO Strauss Zelnick’s earlier public embrace of generative AI. The company attributed the cuts to “shifting priorities,” leaving the future of its AI strategy uncertain. In a separate development, former Halo art director Glenn Israel has accused Microsoft of harassment and retaliation.
He alleges unethical and unlawful practices by senior Halo Studios representatives between 2024 and 2025, describing blacklisting, fraud, and what he calls a staged harassment campaign intended to force out employees after he filed complaints. Israel also claims investigations were blocked and that his role was falsely labeled “redundant” in retaliation.
Take-Two has not detailed what will replace its AI effort, and Israel’s allegations outline a timeline of events he says unfolded over two years. For now, the publisher’s stance signals a recalibration of its technology focus, while the accusations against Microsoft set out a series of claims that could prompt further scrutiny.