EA acquires US$20 billion in debt; AI will be used to cut costs

The acquisition of Electronic Arts (EA) for $55 billion is under intense scrutiny, mainly due to a report indicating that the new buyers plan to use Artificial Intelligence (AI) as the primary tool to cut operational costs and manage the significant debt taken on in the transaction. This approach raises immediate concerns about job security and the creative future of franchises like Battlefield, The Sims, and Dragon Age.

The structure of the EA acquisition deal is being partially financed with the company taking on $20 billion in debt. According to a report from The Financial Times, individuals involved in the transaction indicated that investors are counting on AI to boost profits and thus alleviate the burden of this massive debt. Essentially, the technology is being considered not as a creative tool, but as a financial efficiency mechanism designed to reduce operational costs.

The Financial Times does not specify the extent of the use of AI or its exact purposes, such as whether the technology would be heavily employed in game development. This lack of clarity is critical, as the use of AI in the creative process raises serious concerns. In addition to ethical issues about the risk that "soulless technology could replace genuine human creativity" and environmental concerns associated with the widespread use of AI, the main uncertainty lies in the risk that the adoption of AI could lead to real people losing their jobs within EA.

Concerns about potential layoffs at EA had already been raised by the community in response to the acquisition news, given the $20 billion debt. Fans of fan-favorite titles like Mass Effect expressed fear for the future of the series (although EA has not issued any statement confirming that any franchises are being abandoned). Pressure for cost-cutting threatens the quality and production of established franchises like Battlefield, The Sims, and Dragon Age.

In contrast to the cost-cutting narrative, EA's leadership maintains an optimistic discourse about the use of AI for development. Just last year, CEO Andrew Wilson insisted that AI is central to the company's creative journey, stating that "AI in its various forms has always been central to this creative journey." He added: "We all remember playing against AI. And it has evolved into today's generative AI innovations. This remarkable technology is not just a buzzword for us – it is at the core of our business."

In a message sent to employees, CEO Wilson sought to inspire confidence in the company's future under new ownership. He insists that: "with continued rigor and operational excellence, we can amplify the creativity of our teams, accelerate innovation, and pursue transformative opportunities that position EA to lead the future of entertainment. Together, we will create experiences that are bold, expressive, and deeply connected to inspire generations of players worldwide." The deal is expected to close in the first quarter of the fiscal year 2027, subject to customary closing conditions, including the required regulatory approvals and EA shareholders' approval.

The $55 billion acquisition of EA is marked by a paradox: Andrew Wilson's optimistic view of AI as a creative engine contrasts with the new investors' urgent need to use the technology to cut operational costs and manage the $20 billion in debts. The future of EA will be defined by how the new owner balances the need for immediate profit with preserving human creativity in franchises like Battlefield and Mass Effect.