Artificial intelligence video generation startup Runway AI Inc. is reportedly in talks to raise $450 million in new funding at a $4 billion valuation. This comes at a time when AI startups continue to shine in an otherwise subdued venture capital market.
The Information reports that the fundraising talks involve VC firm General Atlantic, citing a person involved in the deal and another who spoke with Runway executives.
Founded in 2018, Runway offers an AI platform that enhances video creation and editing. The company describes its mission as “building artificial intelligence systems to usher in a new era for creativity where the best stories are yet to be told.” Runway’s platform provides a suite of creative tools designed to simplify and improve workflows for both professional videographers and hobbyists, including real-time video editing, automated rotoscoping, and motion tracking.
Runway’s AI-powered solutions aim to reduce the time and effort required to produce high-quality video content. For instance, its automated rotoscoping tool quickly and accurately separates foreground elements from the background, a task traditionally requiring significant manual effort. Another feature, motion tracking, allows users to track and apply effects to moving objects within a video, streamlining the editing process and making it more accessible and less time-consuming.
Recently, Runway made headlines on June 17 with the launch of Gen-3 Alpha, a new AI model capable of generating 10-second videos based on text prompts. This model can produce higher-fidelity videos than previous versions and is claimed to better depict motion. The company is also developing new safety features to ensure its AI video service is not used to generate harmful content. This includes adding a provenance system based on the C2PA standard, developed by an industry consortium including Intel Corp., Arm Holdings plc, and other large tech companies.
To date, Runway has raised $237 million in funding, with rounds of $141 million in June 2023 and $50 million in December 2022. Investors include Google LLC, Nvidia Corp., Salesforce Ventures LLC, Felicis Ventures, Amplify Partners, Lux Capital Management, Coatue Management, and Madrona Venture Group.
