Epic Games is preparing to allow AI models to be trained on outputs produced with Unreal Engine and MetaHuman. CEO Tim Sweeney announced it in a post on X, responding to a Kotaku article about Epic issuing a DMCA takedown against an AI-made Fortnite clone.
According to Sweeney, the EULA currently restricts AI training on outputs from Unreal Engine and MetaHuman. The company is working to remove that restriction from the terms. Developers keep a choice, however: each game built with these tools is released under terms chosen by its developer, which can allow or restrict AI training.

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The move fits a broader strategy. Epic recently announced a switch to AI-first game development, starting with an unannounced Disney shooter, and added new AI-powered features to Unreal Engine. The Disney project has been delayed with no new date, and its team will have to produce code and art with AI. On the engine side, Unreal Engine 6 introduces LumenRef, an experimental mode promising path-tracing quality with much shorter render times.
The community reaction has been largely negative. Many reject Sweeney's framing of the issue as one of copyright and find it hypocritical for Epic to demand takedowns of AI-generated clones while opening its own outputs to AI training. The same debate has emerged among indie developers, who are limiting public demos for fear that AI could replicate their mechanics within days.

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The issue also touches the wider question of engine usage rules. Dean Hall, with the open source framework Brutal, has criticised Unity and Unreal for not being accountable enough to developers, warning that as agent-based AI workflows spread, companies may try to extract more money from developers who cannot switch tools. Epic's EULA change should be read in that light: when and in what form it takes effect is still unclear, and whether the choice left to studios will be enough to ease concerns remains to be seen.

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