Runway, the buzzy photo and video AI startup just announced that it has raised a Series D of at least $100 million in funding at a $1.5 billion valuation from a cloud service provider, according to multiple people familiar with the deal. This latest round of funding will triple the startup’s valuation from its Series C valuation of just five months ago, as reported by Forbes.
Runway was created by Cristóbal Valenzuela, Anastasis Germanidis, and Alejandro Matamala-Ortiz, former students at NYU’s Interactive Telecommunications Program. While there, the trio took an interest in the potential of neural networks to produce tools for artists and filmmakers, a seemingly crazy idea that eventually turned into the foundation for Runway.
Prior to their Series-D lineup, the startup had raised $100 million from various venture capital firms such as Amplify Partners, Lux Capital, Coatue, and Felicis Ventures. Thus far, Runway’s AI tools have been used in a number of award-winning films, such as Everything, Everywhere, All at Once.
This isn’t the typical tech fundraising effort, as the startup is reportedly being funded by a cloud service provider rather than the traditional VC firms. This approach to AI-focused startups enables entities to access cloud computing resources and provide them with the specialized talent and compute tools they need to build the entire technology stack. In 2019, Microsoft invested $1 billion in the OpenAI project split between cash and credits for its Azure cloud business, following in the footsteps of this type of funding.
Cristóbal Valenzuela is an experienced software developer and AI researcher. He has worked on cloud robotics and deep learning projects, applying AI, computer vision, and machine learning optimisations to robotics systems. He also lectures in coding and computer vision courses around the world. Anastasis Germanidis is a software architect with a passion for design and open source, who has a passion for creating products with an eye for beautiful design and great usability. Alejandro Matamala-Ortiz is an experienced tutor of engineering, mathematics and computing. Alejandro is a multi-disciplinary thinker who is excited about the potential of technology to revolutionise different industries, especially the creative ones.
Runway is an AI startup that has received much attention lately. With their latest round of funding, they have a bright future ahead of them and the potential to create groundbreaking products and technologies. Their unconventional approach to tech fundraising shows they are determined to make the most of their resources, and their impressive creativity and determination truly stand out.
