It was founded by Alex Hutchinson, Yassine Riahi, and Reid Schneider in early 2017 and acquired by Google in December 2019, becoming part of Stadia Games and Entertainment (SG&E).

The first office was established in a motion capture studio for which the company did not have to pay rent, fit with IKEA desks and second-hand furniture from Craigslist.

[9][10] Jade Raymond, the head of SG&E, stated that the purchase was driven by the expertise of the Typhoon Studios team, citing multiple AAA games previously shipped by the individual members.

[14] Several of the former staffers—including Hutchinson, Schneider, Bilodeau, Yannick Simard, and Marc-Antoine Lussier—founded the studio Raccoon Logic in August 2021 with initial funding from Tencent and other investors.

They negotiated with Google to maintain control of the Journey intellectual property, including the work Typhoon Studios had completed on a planned sequel.