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Epic and Google have a secret $800 million Unreal Engine and services deal

Recorded: Jan. 22, 2026, 10:03 p.m.

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Epic and Google have a secret $800 million Unreal Engine and services deal | The VergeSkip to main contentThe homepageThe VergeThe Verge logo.The VergeThe Verge logo.TechReviewsScienceEntertainmentAIPolicyHamburger Navigation ButtonThe homepageThe VergeThe Verge logo.Hamburger Navigation ButtonNavigation DrawerThe VergeThe Verge logo.Login / Sign UpcloseCloseSearchTechExpandAmazonAppleFacebookGoogleMicrosoftSamsungBusinessSee all techGadgetsExpandLaptopsPhonesTVsHeadphonesSpeakersWearablesSee all gadgetsReviewsExpandSmart Home ReviewsPhone ReviewsTablet ReviewsHeadphone ReviewsSee all reviewsAIExpandOpenAIAnthropicSee all AIVerge ShoppingExpandBuying GuidesDealsGift GuidesSee all shoppingPolicyExpandAntitrustPoliticsLawSecuritySee all policyScienceExpandSpaceEnergyEnvironmentHealthSee all scienceEntertainmentExpandTV ShowsMoviesAudioSee all entertainmentGamingExpandXboxPlayStationNintendoSee all gamingStreamingExpandDisneyHBONetflixYouTubeCreatorsSee all streamingTransportationExpandElectric CarsAutonomous CarsRide-sharingScootersSee all transportationFeaturesVerge VideoExpandTikTokYouTubeInstagramPodcastsExpandDecoderThe VergecastVersion HistoryNewslettersExpandThe Verge DailyInstallerVerge DealsNotepadOptimizerRegulatorThe StepbackArchivesStoreSubscribeFacebookThreadsInstagramYoutubeRSSThe VergeThe Verge logo.Epic and Google have a secret $800 million Unreal Engine and services dealComments DrawerCommentsLoading commentsGetting the conversation ready...PolicyClosePolicyPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All PolicyReportCloseReportPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All ReportTechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechEpic and Google have a secret $800 million Unreal Engine and services deal“Sorry, I’m blowing this confidentiality.”“Sorry, I’m blowing this confidentiality.”by Adi RobertsonCloseAdi RobertsonSenior Editor, Tech & PolicyPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Adi Robertson and Sean HollisterCloseSean HollisterSenior EditorPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Sean HollisterJan 22, 2026, 9:47 PM UTCLinkShareGiftPhoto illustration by Cath Virginia / The Verge | Photos by Philip Pacheco, Bloomberg, Getty ImagesPart OfEpic v. Google: everything we learned in Fortnite courtsee all updates A judge is questioning whether Epic Games and Google are settling their long-running antitrust fight partly because of a previously unannounced partnership involving the Unreal Engine, Fortnite, and Android. In a hearing in San Francisco today, the court revealed that Epic and Google have struck a new deal that apparently includes “joint product development, joint marketing commitment, joint partnerships.” California District Judge James Donato expressed concerns that the agreement — which he indicated would involve Epic “helping Google market Android” and Google newly “using Epic’s core technology” — could have led Epic to soften its demands for changes to the overall Android ecosystem.Donato allowed Epic and Google to keep most of the details of the plan under wraps. But during the hearing, he quizzed witnesses, including Epic CEO Tim Sweeney and economics expert Doug Bernheim, on how it might impact settlement talks — revealing some hints in the process. “You’re going to be helping Google market Android, and they’re going to be helping you market Fortnite; that deal doesn’t exist today, right?” Donato asked Bernheim, who answered in the affirmative. He also described it as a “new business between Epic and Google.”RelatedEpic v. Google: everything we learned in Fortnite courtIs this the end of Epic and Google’s feud?Sweeney’s testimony cracked the mystery a little further. He referred to the agreement as relating to the “metaverse,” a term Sweeney has used to refer to Epic’s game Fortnite. “Epic’s technology is used by many companies in the space Google is operating in to train their products, so the ability for Google to use the Unreal Engine more fullsome… sorry, I’m blowing this confidentiality,” Sweeney said.Donato then offered a hard dollar figure on one part of the deal: “An $800 million spend over six years, that’s a pretty healthy partnership,” he said. We soon learned that refers to Epic spending $800 million to purchase some sort of services from Google: “Every year we’ve decided against Google, in this year we’re deciding to use Google at market rates,” he said. Sweeney did throw cold water on the idea that Epic and Google are jointly building a single new product together, though. “This is Google and Epic each separately building product lines,” he clarified, when Judge Donato asked what the term sheet referred to with the line “Google and Epic will work together.”Google declined comment on the deal; Epic did not immediately reply to a request for comment.Donato seemed potentially leery of the partnership, asking Bernheim whether it could constitute a “quid pro quo” that reduced Epic’s incentive to push for terms that would benefit other developers. Currently, Epic is backing a settlement that would see Google reduce its standard app store fees worldwide and allow alternative app stores to register for easy installation on Android.“I don’t see anything crooked about Epic paying Google off to encourage much more robust competition”Sweeney disputed the notion that Epic might be getting paid off to soften its terms, when it’s the one paying out. “I don’t see anything crooked about Epic paying Google off to encourage much more robust competition than they’ve allowed in the past,” he said. “We view this as a significant transfer of value from Epic to Google.” He also says the Epic Games Store won’t get any special treatment from Android in the future under this deal.It appears that the settlement arrangement is tied to the business deal. Judge Donato suggested that Epic and Google would only make the deal if the settlement goes through. Sweeney says the specific terms of the deal have not yet been reached, but admitted that he expects them to. He told Judge Donato that yes, he considers the settlement and deal “an important part of Epic’s growth plan for the future.”Sweeney has said in the past that Epic won’t cut sweetheart deals with platforms. In 2023, after the Epic v. Google victory, he told The Verge that “we’ve always turned down special deals just for Epic. We’ve always fought on the principal that all developers should be, you know, given the same opportunities.”Disclosure: Vox Media, The Verge’s parent company, has filed a lawsuit against Google, seeking damages from its illegal ad tech monopoly.Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Adi RobertsonCloseAdi RobertsonSenior Editor, Tech & PolicyPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Adi RobertsonSean HollisterCloseSean HollisterSenior EditorPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Sean HollisterAntitrustCloseAntitrustPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All AntitrustGoogleCloseGooglePosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All GooglePolicyClosePolicyPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All PolicyReportCloseReportPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All ReportTechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechMore in: Epic v. 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Epic Games and Google have entered into a secret $800 million agreement encompassing Unreal Engine and services, revealed during a court hearing in San Francisco. The revelation, brought to light by Judge James Donato, significantly complicates the ongoing antitrust lawsuit between Epic Games and Google. The core of the deal involves a six-year expenditure of $800 million by Epic to gain access to Google’s services, with an annual commitment from Epic to utilize Google at market rates.

A key element of the agreement centers on Google’s use of Epic’s Unreal Engine technology, particularly within Google’s product development efforts. This collaboration includes Epic assisting Google in marketing Android, while Google, in turn, provides support for Epic’s Fortnite metaverse ambitions. The judge expressed concerns regarding potential implications for settlement negotiations between the two companies, specifically questioning whether the arrangement could constitute a “quid pro quo,” potentially diminishing Epic’s leverage in demanding broader changes to the Android ecosystem.

During the hearing, Epic CEO Tim Sweeney acknowledged the agreement’s significance, stating it’s “an important part of Epic’s growth plan for the future,” though he clarified that the specific terms of the deal remain to be finalized. Sweeney also underscored Epic’s history of rejecting special deals with platforms, emphasizing their continued commitment to advocating for equitable opportunities for all developers.

Judge Donato’s probing questioning, directed primarily at Epic’s Doug Bernheim, highlighted the potential for the agreement to reshape the legal landscape of the case. The judge’s emphasis on Google’s access to Unreal technology and Epic's role in Android marketing suggests a reassessment of the core arguments within the antitrust suit.

Furthermore, Epic’s commitment to an annual expenditure on Google services, alongside their use of Unreal Engine, points toward a substantial, long-term partnership. The acknowledgement of Google’s support for Fortnite, particularly in the context of the “metaverse,” suggests a strategic alignment between the two companies, potentially reshaping the competitive dynamics within the gaming and virtual reality sectors. The judge’s demand that Google effectively market Android through Epic, along with Epic’s marketing of Fortnite through Google, places a significant burden on both parties.

The revelation has triggered reactions from the state attorneys general involved in the antitrust case, who expressed reservations about the potential impact of the agreement. The undisclosed nature of the deal has naturally fueled skepticism, raising questions about potential conflicts of interest and the overall fairness of the legal proceedings.

Ultimately, Epic's decision to engage in this partnership represents a notable shift in strategy, moving beyond a purely adversarial stance towards Google. While the details of the agreement remain somewhat opaque, the financial commitment and the collaborative efforts around Unreal Engine and Fortnite signal a calculated move to leverage Google's resources and market access, aiming to achieve a more favorable outcome in the protracted legal battle.