The company was founded earlier this year by former Call of Duty producer Pete Blumel, who says the L.A.-based firm will focus on delivering "high production value" content for a range of VR devices.
It's a mandate that prompted the Bay partnership, with the Bad Boys and Transformers helmsman being brought in to direct and produce content in "cinematic-style VR."
"I've enjoyed a longstanding relationship with Mr. Bay and couldn’t be more excited to work with him and truly leverage his unique vision and incredible depth of experience to this amazing new medium," said Blumel.
"We’re all absolutely thrilled to be working with such a cinematic powerhouse in the field of action entertainment."
The Rogue Initiative currently has several unannounced projects in development, and is seeking investment to expand its slate of Sony Playstation, Oculus, HTC Vive, and Samsung GearVR titles.