Localthunk, the creative force behind the innovative roguelike poker game Balatro, recently found themselves in the midst of a controversy over AI-generated art on the game's subreddit. The situation escalated quickly, as reported by Garbage Day and Rock Paper Shotgun, and involved DrTankHead, a former moderator of the Balatro subreddit, who also moderated a NSFW version of the subreddit.

The controversy began when DrTankHead publicly stated that AI-generated art would not be banned from the subreddits, provided it was properly tagged and claimed. This stance, they claimed, was reached after discussions with Playstack, the game's publisher. However, Localthunk quickly clarified on Bluesky that neither they nor Playstack supported the use of AI-generated art.

In a detailed follow-up on the subreddit, Localthunk firmly denounced AI 'art', emphasizing their commitment to traditional artistry and the harm they believe AI-generated content causes to artists. They stated, "Neither Playstack nor I condone AI 'art'. I don't use it in my game, I think it does real harm to artists of all kinds. The actions of this mod do not reflect how Playstack feels or how I feel on the topic. We have removed this moderator from the moderation team." Localthunk also announced a new policy banning AI-generated images from the subreddit and promised updates to the rules and FAQ to reflect this stance.

In response to the confusion, Playstack's communications director acknowledged that the existing rule against "unlabeled AI content" may have been ambiguous and could have been misinterpreted as allowing such content. The mod team plans to revise the language to prevent future misunderstandings.

DrTankHead, after being removed as a moderator of r/Balatro, posted on the NSFW Balatro subreddit, clarifying that their goal was not to make the subreddit AI-centric. However, they are considering designating specific days for posting AI-generated, non-NSFW art. This suggestion met with backlash from users, one of whom suggested that DrTankHead take a break from Reddit.

The debate over AI-generated content is a hot topic in the gaming and entertainment industries, both of which have faced significant layoffs recently. Critics, including players and creators, have raised concerns about ethical and rights issues, as well as the quality of AI-generated content. For example, Keywords Studios' attempt to create a game using entirely AI-generated content failed, with the company admitting to investors that AI could not replace human talent.

Despite these setbacks, tech companies continue to invest heavily in AI. EA has described AI as "the very core" of its business, while Capcom is experimenting with generative AI to generate ideas for in-game environments. Activision also recently acknowledged using generative AI for some assets in Call of Duty: Black Ops 6, following criticism over an AI-generated zombie Santa loading screen.