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Runway started by helping filmmakers â now it wants to beat Google at AI
AI video-generation startupRunwaydoesnât have the typical Silicon Valley pedigree. No Stanford founders, no ex-Google founders, no nine-figure seed round that bought them time to ignore revenue. Its three founders â two from Chile, one from Greece â met at NYUâs Tisch School of the Arts and built the company in New York. Runway also could be, depending on who you ask, one of the most consequential AI companies today. Not because of what it has built, but because of what it is trying to build next. For the past several years, the AI industry has largely operated on the premise that intelligence lives in language. Large language models like OpenAIâs ChatGPT and Anthropicâs Claude reflect that bet. Runway, alongside other competitors, is making a different one. Its founders believe the next form of AI intelligence wonât be built from text, but from video and world models that learn how the world works, not just how humans describe it. That distinction sounds academic. Its implications are not. Runway co-founder and co-CEO Anastasis Germanidis said training models directly on observational data from the world is the next frontier of AI. The companies that get there first, he argues, wonât be the ones that perfected language. âWeâre basically bound by our own understanding of reality,â Germanidis told TechCrunch from Runwayâs homey sunlight-filled headquarters near Union Square. âLanguage models are trained on the entire internet, on message boards and social media, on textbooks â distilling the existing human knowledge,â Germanidis continued. âBut to get beyond that, we need to leverage less biased data.â Founded in 2018, Runway built its reputation onvideo-generation modelsâ including its latest Gen-4.5 â and AI tools that let people turn text prompts into editable, cinematic content. Today, Runwayâs technology powers production workflows for filmmakers and ad agencies, and the company has signed deals with major media players likeLionsgateand AMC Networks. Its tools have even been used in films such as âEverything Everywhere All At Once.â Runway is now valued at$5.3 billionand, according to one of its founders,added $40 million in annual recurring revenuein the second quarter of 2026. If Runwayâs bet that video generation is the path to world models pays off, the result will be felt from Hollywood to drug discovery. If it doesnât, Runway risks being outpaced by competitors with far deeper pockets â Google chief among them. Within the last six months, the startup has put its plan into action and expanded beyond video generation, launching itsfirst world model in December, with plans to launch another this year. (World models are AI systems that simulate environments well enough to predict how theyâll behave.) Runway isnât alone in its pursuit of turning physics-aware video models to world models, with near-term use cases in interactive entertainment, gaming, and robotics training. StartupsLumaandWorld Labsare on asimilar trajectory, and Google has pointed itsGenie world modelin the same direction. Everyone is after some version of the same thing: AI that solves humanityâs hardest problems. Thatâs far from Runwayâs original product, but itâs the result of both emergent capabilities in the technology and founders who were predisposed to follow where it led. For his part, Germanidis sees world models as scientific infrastructure. The more sensory data and observations you train a single model on, the closer you get to a working digital twin of the universe â one you can run experiments on faster than any lab could. Much of the scientific process is just waiting on results, he points out. If you could compress that waiting, you could compress progress itself. âIf we can build a better scientist than human scientists, we can accelerate progress in how we understand the universe and how we solve problems,â Germanidis said. Germanidis fell in love with programming as an 11-year-old in Athens and came to the U.S. at 18 to study neuroscience and film. He turned back to computer science, working at several Silicon Valley tech firms before deciding heâd had enough of the culture.Co-CEO CristĂłbal Valenzuela, born and raised in Santiago, studied economics as an undergraduate before working in film and then software. Another Santiago native, Chief Innovation Officer Alejandro Matamala-Ortiz studied advertising and ran a design firm. The three met in 2016 while attending NYUâs ITP (Interactive Communications Program), a graduate program that Valenzuela described as an âart school for engineers.â The co-founders had all aspired to befilmmakersat certain points in their lives, according to Matamala-Ortiz. So Runway started with a simple mission: Can we use AI to makeeveryone a filmmaker? After releasing their first video generation model in February 2023 â which isstaggeringly unimpressivecompared to what Runway is putting out today â that mission evolved into: Could we make everyone agreatfilmmaker, according to Matamala-Ortiz. It required growing the team to what it is today. The company has 155 workers spread across offices in New York, London, San Francisco, Seattle, Tel Aviv, and most recently, Tokyo. "But throughout this process, we learned that these models can understand how the world works, and if you scale them, they can be useful for many other different things,â he added. Things like robotics, drug discovery, and climate modeling â the kinds of problems that have stumped researchers for decades. Last year,Runway launched a robotics unitwhich Germanidis says has already resulted in real-world testing and deployments. Germanidis,like others,sees the field heading towardtraining a single model on many different modalitiesâ text, video, voice, and other sensors â and thinks the compounding effect is the point. His own moonshot goal for Runwayâs technology, given enough time and resources, is biological world models and anti-aging research. Whether Runway can carry its video dominance into world models is far from settled, and the competition isnât waiting around. Runway was among the first to AI video generation, but world models are a different race with deep-pocketed and well-respected competitors. Google, formerMeta chief scientist Yann LeCun, AIâs âgodmotherâFei-Fei Li, and a growing field of startups are all chasing the same goal. Kian Katanforoosh, CEO of AI skills benchmarking companyWorkeraand a lecturer at Stanford, pointed out that no one has yet proven the jump between video intelligence and generalized reasoning via world models, but that doesnât mean itâs impossible. He said that if Runway wants to turn its world model bet into reality, it will need to continue gathering resources â compute chief among them. Runway has deals withCoreWeaveandNvidia, but wouldnât confirm whether it has dedicated cluster access â the kind of guaranteed, large-scale compute that training frontier models requires. âHow are you going to build a foundational model without a cluster?â Katanforoosh asked. âI donât think anybody can do that.â Runway has raised $860 million to date, including a$315 million roundin February from strategic partners like AMD Ventures and Nvidia. Thatâs roughly in line with its most immediate competitors, Luma AI and World Labs, which have raised $900 million and $1.29 billion, respectively, according to PitchBook. But Runway is also going up against incumbents like OpenAI, which has raised around $175 billionper CEO Sam Altman, and tech behemoth Google, whose parent company Alphabet is worth $4.86 trillion.Google is Runwayâs biggest threat.The companyâs Veo model competes directly with Runwayâs video generation business, while its Genie world model targets the same longer-term territory Runway is racing towards. Katanforoosh nodded at OpenAI, whichshuttered its video platform Sorain March after burning roughly$1 million per dayin compute costs with barely $2.1 million in revenue according to some estimates. His point: resources alone donât guarantee survival. Theydonât guarantee itfor Runway either. Katanforoosh isnât writing Runway off. He pointed to AI audio startupElevenLabs, which hasoutperformedOpenAI and Google on their own benchmarks, despite lacking the resources and pedigree of either. Runway, he argues, could follow a similar playbook. The comparison isnât lost on Runwayâs founders. Valenzuela says the startupâs lack of Bay Area âstandardizationâ gives them an edge. Not only do they have diversity of thought, he contends, but without Silicon Valley ties, they had to be scrappier, lacking the war chest many of their peers have access to that would have insulated them from the need to generate revenue early. And according to Michelle Kwon, Runwayâs chief operating officer, the company isnât in a rush to raise more funds, even as compute demands increase with scale. âTheir background has led them to be early, to be right more often than not, and to build a culture that moves incredibly quickly,â early investor Michael Dempsey, managing partner at Compound, told TechCrunch. For Valenzuela, that culture starts with how he sees the world in the first place.He spends whatever free time he has â not much, as a co-CEO and new father â reading books, including the Chilean poet Nicanor Parra, whom he describes as the antithesis of Pablo Neruda: less formal, less academic, holding a view that poetry belongs to the people rather than to rules. âRules are just rules they invented,â Valenzuela said. âThatâs a driving force of how we do things at Runway. They say Silicon Valley is here and thatâs where the startups are. Why? Those are just made up rules. Scrub them all and start again.â
3 hours ago
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OpenAI launches ChatGPT for personal finance, will let you connect bank accounts
On Friday, OpenAI launched a new set of personal finance tools in preview for ChatGPT Pro subscribers in the U.S., letting them connect their accounts and ask questions ranging from spending analysis to future financial planning. OpenAI has partnered with the financial connection service Plaid to manage the account connections. Users can connect to over 12,000 financial institutions, including Schwab, Fidelity, Chase, Robinhood, American Express, and Capital One. Once users connect these accounts, they will see a dashboard of their portfolio performance, spending, subscriptions, and upcoming payments. The new product comes just one month after OpenAIacquired the team behind personal finance startup Hiro, which was backed by firms like Ribbit, General Catalyst, and Restive, in April. OpenAI said that the Hiro teamâs expertise in finance was useful in launching this product but didnât specify if the entire feature was built by them. OpenAI users can access the tool by selecting âGet startedâ in the âFinancesâ option in the sidebar, or typing â@Finances, connect my accountsâ in a ChatGPT conversation. Once users do that, the chatbot will guide them about linking accounts through Plaid. The company said it plans to support Intuit soon, which would enable analysis such as the impact of a stock sale on taxes or the odds of a credit card approval. According to OpenAI, more than 200 million users already ask financial questions to ChatGPT every month. The company also noted that the new GPT-5.5 model is stronger at reasoning with context, which is crucial for answering finance-related questions. The company said it worked with finance experts to create a benchmark for the model to improve on personal finance questions. With the new financial tool integration, users can get detailed answers to questions such as âI feel like Iâve been spending more recently. Has anything changed?â or âHelp me build a plan to be ready to buy a house in my area in the next 5 years.â Users can go to Settings > Apps > Finances to remove connections to certain accounts if they want. Once they disconnect a service, the synced data will be removed from ChatGPT in 30 days. Whatâs more, users can also view and delete financial memories from the Finances page. Generalized chatbots are designed to answer anything, leading people to ask questions about data-sensitive topics such as health, finance, and personal life. AI companies are realizing this and making specialized products for these sectors. BothOpenAI and Anthropichave launched health-related tools. Earlier this month, Perplexity launched its ownfinancial research product based on its Computer agent. OpenAI said its personal finance tools will be available on ChatGPT on the web and on iOS for Pro users. It noted that, based on the feedback from these users, it wants to improve the product before making it available to Plus users.
3 hours ago
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Rajasthan Enters Semiconductor Race With First Chip Packaging Plant in Bhiwadi
the facility currently has an annual packaging capacity of 60 million semiconductor units
3 hours ago
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Telangana's Life Sciences Hub Hits $145 Bn, Draws âš84,000 Cr in 2 Years
Hyderabad now hosts technology and innovation centres of nine of the worldâs 10 ten life sciences companies.
3 hours ago
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