Artificial intelligence startup Infinite Reality has successfully acquired the music-piracy app-turned-streaming service Napster in a $207 million agreement and intends to develop a metaverse centered on music.
In a statement released on March 25, Infinite Reality mentioned that Napster would provide “branded 3D virtual spaces,” enabling virtual concerts and “social listening parties,” along with opportunities for selling virtual merchandise.
“Picture entering a virtual venue to enjoy an exclusive performance with friends, chatting with your favorite artist in their personalized virtual space as they unveil their new single, and being able to purchase their exclusive digital and physical merchandise,” expressed Napster’s CEO Jon Vlassopulos, who will retain his position following the acquisition.
“The internet has journeyed from desktop to mobile, transitioned from mobile to social, and now we are stepping into the immersive age,” he added.
“The most legendary collab?! Infinite Reality has acquired the iconic online music brand @Napster.
With this acquisition, we’re expanding and reimagining Napster, empowering artists with new audience monetization and engagement capabilities, underpinned by iR’s #immersive… pic.twitter.com/L4Fig7QFct
— Infinite Reality (@Infinite_iR) March 25, 2025
Infinite Reality also highlighted plans for Napster to enable musicians to utilize AI-driven customer and community management tools and analytics dashboards, helping them monitor fan interactions and promote their other entertainment properties, including Esports teams.
Napster’s Recent Transformation
Initially launched in 1999 as a peer-to-peer file-sharing service primarily for music, Napster was a trailblazer in piracy. It was forced to close in 2001 due to a court ruling amid a wave of copyright infringement lawsuits.
After declaring bankruptcy, the company sold its brand, which was subsequently reintroduced as a music streaming platform and has since changed hands several times over the past two decades. It was most recently acquired by the blockchain company Algorand and crypto investment firm Hivemind in 2022.
Related: Here’s what musicians actually think of tokenizing content in Web3
In 2022, Napster made strides into the Web3 realm by announcing plans to launch its own Napster token on the Algorand blockchain, intended for purchasing music subscriptions and other content. The brand also acquired the Web3 music startup Mint Songs in February 2023.
Source: Napster
John Acunto, co-founder and CEO of Infinite Reality, expressed the aspiration to spearhead a “transformation in the internet industry from a basic 2D clickable web to an immersive 3D interactive experience.”
According to Infinite Reality, the acquisition of Napster is expected to finalize in a few weeks. The firm aims to advance the Napster brand into a leading immersive music platform that supports artists, fans, and curators through enhanced audience monetization and engagement opportunities.
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