Epic Games to Train AI on Unreal Engine Outputs, Reversing EULA Restriction

Epic Games CEO Tim Sweeney announced the company will soon allow AI training on outputs from Unreal Engine and MetaHuman, reversing its current restriction in the End User License Agreement. The move follows backlash over Epic's DMCA takedown of an AI-created Fortnite clone. Sweeney stated on X that Epic is working to remove the restriction from EULA terms, though individual game developers can still choose their own AI training policies. He framed the change as separate from Fortnite IP protection, which remains prohibited without permission, and noted training on hosted content like Fab depends on each developer's NoAI tag. The announcement drew criticism from the gaming community, which accused Epic of hypocrisy for blocking an AI-generated clone while planning to train on developers' work. It remains unclear whether the training data will be used solely for Epic's own models or sold to third parties.