AI video startup Runway raises $315M at $5.3B valuation, eyes more capable world models

Runway, a company specialising in AI-driven video generation, has closed a $315 million Series E funding round, nearly doubling its valuation to $5.3 billion, according to a source familiar with the transaction.

In a blog post announcing the raise, Runway said the new capital will support efforts to “pre-train the next generation of world models and bring them to new products and industries.” World models are artificial intelligence systems designed to build internal representations of environments, enabling them to anticipate and plan for future events. Many researchers consider such systems critical for advancing beyond the current capabilities of large language models.

The company, widely recognised for its physics-aware AI video-generation tools, introduced its first world model in December. It now views the technology as central to addressing complex challenges in sectors including healthcare, climate science, energy, and robotics. While Runway has traditionally built a strong presence in media, entertainment, and advertising — highlighted by a recent partnership with Adobe — a company spokesperson indicated that adoption is also growing in gaming and robotics.

Runway’s strategic pivot unfolds amid increasing competition among AI research labs developing world models. Competitors include Fei-Fei Li’s World Labs and Google DeepMind, both of which have recently made their own models publicly accessible.

The funding announcement follows the debut of Gen 4.5, Runway’s newest video-generation model. Gen 4.5 enables users to create high-definition video from text prompts and introduces native audio generation, support for long-form multi-shot sequences, improved character consistency, and enhanced editing capabilities.

The model has strengthened Runway’s standing in the AI sector after outperforming video-generation systems from both Google and OpenAI across multiple benchmarks. This achievement likely contributed to heightened investor interest.

Alongside advancements in model development, Runway has expanded its infrastructure footprint. The company recently agreed with CoreWeave to increase its compute capacity, a move that reassured investors about its ability to compete in a resource-intensive field.

Looking ahead, Runway intends to use the fresh funding to significantly grow its approximately 140-person workforce across research, engineering, and go-to-market functions, according to a spokesperson.

The Series E round was led by General Atlantic and included participation from Nvidia, Fidelity Management & Research, AllianceBernstein, Adobe Ventures, Mirae Asset, Emphatic Capital, Felicis, Premji, and AMD Ventures.