Valve won't ban AI games from Steam despite growing complaints and extortion threats

[Daniel Sims]

TL;DR: During the most recent Next Fest demo showcase, many Steam users complained about having to sift through vibe-coded titles with AI-generated assets. The emerging threat of AI-coded clones has also made some developers hesitant to release demos. Valve, sticking to its usual open-door philosophy, advised developers to simply make their games better while promising to continue investigating the issue.

Although Valve forces developers to disclose how they use generative AI in making their games, the company refuses to ban the technology's use outright from Steam. Valve also recently recommended that indie developers concerned about AI clones strive to make their original games better through constant updates and community building.

The company held an extensive Q&A session with developers at the 2026 Busan Indie Connect Festival, with AI a leading topic. Games with AI-generated assets have drawn complaints from Steam users since at least 2025, but the situation arguably intensified this year as vibe-coded titles add to the controversy.

One developer at the event claimed that some developers had received extortion emails threatening to release AI-generated clones of their projects if they didn't pay. Valve's Tom Giardino said this was the first he'd heard of such cases but promised the company would look into them and recommended that affected developers contact law enforcement.

Otherwise, Valve advised indies to make their games harder to copy by continually adding features and gradually building loyal communities instead of relying on a single selling point. Comparing AI games to prior controversies with Greenlight and the current Steam Direct release system, the company reiterated that it doesn't aim to be an arbiter of which titles deserve to be released.

Valve also explained why shoppers might have seen so many AI-generated games during this month's Next Fest, which prompted calls for an AI filter. The company revealed that the event's front page displays games almost completely at random for the first two days before tailoring suggestions to users' preferences. Valve acknowledged that the strategy can surface a lot of low-quality content, but stressed that it keeps things fair. The company is still thinking of ways to address the issue.

While users criticize Valve for its leniency regarding AI, Epic Games CEO Tim Sweeney has once again called on Valve to drop its AI labeling policy. Calling the rule a "political act," Sweeney accused the company of fomenting an anti-AI hate mob. Epic Games recently released a new vibe-coded version of its launcher, and Sweeney admitted to using AI to develop Unreal Engine features.

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Valve won't ban AI games from Steam despite growing complaints and extortion threats

 

[Kirby1]

"Valve forces developers to disclose how they use generative AI in making their games"

I have released a game on Steam. The statement above is completely false.

There is a single check box that asks you to check it if you used AI so blatantly that it would be obvious at a glance. It's a voluntary disclosure, and it even tells you not to check to box if you used AI reasonably, but not blatantly. Valve has no way to force anyone to check the box and they don't even attempt to verify if a game was made with AI or not, how could they?

Every news post about how Valve "pressures" anyone to disclose AI is completely false. They do no such thing.

 

[Sherwoodnt]

And what incentive is there for developers to make their games better if those improvements will be immediately cloned?

Even if Valve decided they wanted to fight this, it would be a losing battle imho to judge what is original vs clone. Crazy times.

 

[James321]

"Epic Games CEO Tim Sweeney has once again called on Valve to drop its AI labeling policy. Calling the rule a "political act," Sweeney accused the company of fomenting an anti-AI hate mob."

Where does this clown come from telling other people, how to run their company.

Last time I checked Epic Games is losing to Steam so clearly its something Tim Sweeney is doing wrong.

 

[Puiu]

"Valve forces developers to disclose how they use generative AI in making their games"

I have released a game on Steam. The statement above is completely false.

There is a single check box that asks you to check it if you used AI so blatantly that it would be obvious at a glance. It's a voluntary disclosure, and it even tells you not to check to box if you used AI reasonably, but not blatantly. Valve has no way to force anyone to check the box and they don't even attempt to verify if a game was made with AI or not, how could they?

Every news post about how Valve "pressures" anyone to disclose AI is completely false. They do no such thing.

Gamers are not dumb. They'll find the AI in any game (as long as it's something that actually sells). They will report the AI to Valve

 

[PXAbstraction]

And what incentive is there for developers to make their games better if those improvements will be immediately cloned?

Even if Valve decided they wanted to fight this, it would be a losing battle imho to judge what is original vs clone. Crazy times.

I know Valve takes a very Libertarian "invisible hand of the market" approach to their store but this idea that making a better game will somehow avoid people stealing it to make a rapid AI clone or trying to extort developers to avoid doing that completely misses the point.

I personally believe that when the bubble pops and these AI services eventually have to charge what they actually cost and not a subsidized rate that loses than $2.50 for every $1 they make, this trend will sort itself to a point. All the 19 year olds using a $20 a month Claude subscription to make full clones of games won't be able to afford that when they're forced to pay realistic token rates instead. That doesn't absolve companies like Valve from taking any action now but yeah, I think and hope this won't be a permanent trend.

 

[Kirby1]

Gamers are not dumb. They'll find the AI in any game (as long as it's something that actually sells). They will report the AI to Valve

Not how this works.

Maybe if a major title released with very obvious AI gen assets and didn't disclose, Valve would add the label. Anything short of that and no. It's a voluntary disclosure.

 

[LordVile95]

Valve doesn’t care about game quality on steam and never has. Thats why its full of shovelware, assets flips etc. As long as they get their 30% it doesnt matter.

 

[Puiu]

Not how this works.

Maybe if a major title released with very obvious AI gen assets and didn't disclose, Valve would add the label. Anything short of that and no. It's a voluntary disclosure.

You can report AI content in Steam and Valve has taken action based on these reports. It's just that it's not big enough to make it to the news.

Breaking the TOS on this won't ban the game, but they can add the AI tag or make the game undiscoverable until the change is made by the devs.

 

[NumberNine]

Valve doesn’t care about game quality on steam and never has. Thats why its full of shovelware, assets flips etc. As long as they get their 30% it doesnt matter.

Sounds like they've got more in common with Nintendo these days than one might imagine.

 

[m4a4]

So basically, Steam is implying:
If the original game is the better game (it should be), then the players will vote it on top of the clones. And considering the clones will be vibe-coded, it should be clear which games are not the real one by how little they're properly updated, or bug fixed. After giving it some time of course.

Not a great system for indie devs. But I don't really see what else they can actually do. If tools were made to target "clones", they could be abused by the clone-makers too...