Epic Games and Valve dispute over Steam AI disclosure

Epic Games CEO Tim Sweeney has criticized Valve’s policy on the Steam platform, which mandates that developers disclose the use of generative artificial intelligence in game assets such as graphics, music, text, or mechanics. Sweeney described the requirement as “abhorrent,” arguing that it forces developers to make a “political statement” that could be weaponized against them by organized online hate groups or detractors.

Sweeney expressed concern that these mandatory disclosures could lead to political targeting and harm the commercial success of studios, particularly independent creators. He suggested that as AI becomes an integral part of production processes, such labels will become unnecessary.

Valve has maintained this transparency policy since January 2024, stating that disclosures are necessary to provide information to consumers and protect artists. While some players view the labels as a way to make informed purchasing decisions, Sweeney contends the practice creates an unfair disadvantage for smaller studios.

Expanding his critique, Sweeney has characterized the transparency mandates as “purely political” maneuvers capable of inciting online boycotts. He further attacked the Steamworks ecosystem, labeling it a “social walled garden” that restricts developers by preventing cross-platform communication between players on different devices and stores. This criticism also extends to Valve’s 30% revenue cut, with Sweeney suggesting the current distribution model stifles technical innovation and limits financial success for developers.