Runway is expanding its focus from merely developing AI video models to actively influencing the creation of applications that utilize them.
The startup, known for its AI video generation technology, has established a $10 million venture fund dedicated to investing in nascent companies working within AI, media, and world simulation sectors, as disclosed by its founders to TechCrunch. Concurrently, Runway is introducing a Builders program, providing free API credits to startups ranging from seed to Series C funding rounds. This initiative indicates Runway’s ambition to cultivate an ecosystem centered on its concept of “video intelligence.”
Runway has solidified its position as a prominent innovator in AI video generation, with its tools widely adopted in film, advertising, and marketing. However, since unveiling its “general world models” in December, the company is broadening its scope beyond creative utilities to encompass a wider array of applications. It aims to collaborate with startups to investigate potential uses that it cannot explore independently.
Alejandro Matamala-Ortiz, Runway’s co-founder and chief innovation officer, shared with TechCrunch his belief that “through video, we’re going to get to video intelligence, and it’s going to open a wider set of use cases in different industries that we can’t double down on today, but that maybe we can support with our research.”
The fund’s investment strategy at Runway is structured around three primary categories:
- Technological teams advancing the forefront of AI and developing novel architectural designs.
- Innovators constructing the application layer over foundational models and extending AI into new applications.
- Enterprises exploring fresh approaches to media production, narrative development, and content delivery.
Matamala-Ortiz mentioned that over the last eighteen months, Runway has discreetly supported several emerging founders and enterprises. Among these are LanceDB, a developer of databases for AI applications, and Tamarind Bio, which leverages AI for designing novel proteins in pharmaceutical research. Additionally, some startups, such as real-time audio generation firm Cartesia, are developing offerings that align with Runway’s existing products.
Chang She, co-founder and CEO of LanceDB, stated to TechCrunch that “the next generation of AI models will be built on multimodal data – video, audio, images, text together.” He added, “LanceDB is building the infrastructure layer that makes that possible, and Runway is one of the few investors who understands why that matters.”
Runway has accumulated nearly $860 million in funding thus far, with support from investors such as Nvidia and the Qatar Investment Authority, achieving a post-money valuation of approximately $5.3 billion. The $10 million fund was initiated with capital from its current investors and key partners, intending to provide investments of up to $500,000 to pre-seed and seed-stage startups.
Runway is not alone among AI startups in allocating investments to nascent companies. OpenAI pioneered this trend with its Startup Fund, and the AI search firm Perplexity introduced its own $50 million venture fund last year, targeting seed-stage startups. Similarly, CoreWeave established CoreWeave Ventures in September to support AI enterprises.
Matamala-Ortiz commented, “Many companies like ours are investing heavily on the primitives that will unlock a new set of applications or new types of companies.” He elaborated, “Companies like ours that are still fairly small with only 150 people can’t focus on everything. But we do see opportunities in partnering very early with new teams that can benefit from what we’re doing.”
Developing with Characters
This identical approach underpins Runway’s latest initiative for developers. Qualified early-stage startups are invited to apply for the program, which grants 500,000 API credits and entry to Characters, Runway’s recently unveiled real-time video agent API, driven by its new suite of general world models.
Characters enables users to engage with generative AI agents instantaneously, endowing them with visual and auditory attributes that can span from animated to lifelike. A key objective of the Builders program is to observe the innovative applications that startups will create using this technology.
Matamala-Ortiz noted, “Until [recently], we didn’t have the possibilities of talking to a real-time video agent, so we are really trying to see which teams see the potential and positive impacts of this technology.”
The program has already commenced, featuring an inaugural group comprising Cartesia, MSCHF, Oasys Health, Spara, Subject, and Supersonik. These participants are employing Characters to facilitate various functions, such as AI-driven customer support agents, interactive brand personas, customized onboarding processes, real-time sales support, and synthetic media instruments.
Matamala-Ortiz expressed enthusiasm for the technology’s promise in telemedicine and education. Given that entertainment is a core focus for Runway, he anticipates Characters will find applications in gaming and novel entertainment formats.
Matamala-Ortiz explained, “This is part of our general world models, which is what we’re pushing for next: a set of models that are interactive, real-time, and immersive.” He added, “When you start combining all of these pieces, you can imagine that you will be able to generate and simulate entire environments, and participate and have conversations with the characters in these worlds.”
Other emerging companies, such as Inworld and Charisma, are similarly developing interactive AI characters for gaming and narrative purposes. Meanwhile, firms like StoReel are exploring AI-generated programs that allow direct user interaction. Certain platforms, including Character AI, have already gained popularity for their conversational AI characters.
Matamala-Ortiz affirmed, “We do really believe that there’s a new kind of internet that’s going to be more personalized, more immersive, and in real time.”
Correction: An earlier version of this article misstated the title and surname of Alejandro Matamala-Ortiz. He is the chief innovation officer, not the chief design officer. Additionally, his last name is hyphenated; he should be referred to as Matamala-Ortiz, not Ortiz.