Once considered a ‘worthless’ idea, an AI startup was valued at $ 1.5 billion, even Google had to favor it.

Once considered crazy when he decided to start a business with the Runway application to edit photos with AI, Cristóbal Valenzuela can now smile when his company is valued at $1.5 billion, according to BI.

In 2018, when he called for funding, most investors thought the man was eccentric. The idea of ​​using AI to edit photos and videos is said to be unfeasible and sadder, does not bring any value to life.

By the beginning of this year, Runway had received nearly $100 million in funding rounds. In May, this startup also received another $100 million from Google, thereby raising its valuation to $1.5 billion. The fact that Runway’s technology was used in the Oscar-winning movie 2023 Everything, Everywhere, All at Once also made it increasingly popular.

Valenzuela is not your typical tech founder. He studied economics and business management, then taught at Adolfo Ibáñez University in Santiago, Chile. In 2016, he realized the attraction of AI and decided to leave his hometown to attend a training program at New York University (USA).

Here, Valenzuela met Anastasto Germanidis and Alejandro Matamala-Ortiz – who later accompanied him in his career in exploring AI in a variety of fields, from self-driving cars to tools for artists and filmmakers. Runway is special in that it brings together the top tech brains.

“We have a video effects specialist in our office,” says Valenzuela.

Also according to Valenzuela, it is very difficult to have a good combination of scientists and artists. However, Runway’s model has helped them work efficiently, integrate with each other and ensure always close to the end user.

Runway’s comprehensive strategy attracts a lot of venture capitalists in Silicon Valley, although in the early stages, the market’s AI applications are not yet effective. The company quickly took advantage of diverse human resources to improve user experience, while strictly controlling risks and errors of technology. This is also a difference that makes it impossible for new competitors to copy.

According to BI, Runway is currently one of the most sought-after AI startups. Earlier this year, the company raised hundreds of millions of dollars from major investment funds such as Amplify Partners, Lux Capital, Madrona, Coatue, Felicis Ventures and, most recently, Google.

According to experts, after the success of ChatGPT, large cloud service providers in Silicon Valley such as Amazon and Google have been constantly looking for potential AI startups to invest in. Runway accordingly caught the “eyes” of many big men and most notably, Google.

Sharing with BI, Valenzuela said that his customers, such as sports shoe brand New Balance, are using the Runway tool to conceptualize, sketch and prototype products. With the power of AI, manufacturers will easily visualize their products even though they are still in the early stages. Filmmakers also incorporate Runway’s tools to speed up shooting and post-production processes such as removing objects and changing backgrounds.

Many new features are being developed to meet the different needs of customers. AI has solved many challenges that previously took a lot of time, effort and money for manufacturers to realize.

However, AI platforms like Runway are also facing a lot of criticism from the art community. Many opinions oppose artificial intelligence products because they violate copyright and professional ethics. In response, Valenzuela believes Runway’s AI simply makes video creation easier.

“It is the responsibility of every generation of artists to make the most of the power of technology to create art. Art sometimes does not require sophisticated techniques. It simply conveys a meaningful message to society,” Valenzuela said.

In addition to selling solutions to movie producers and TV channels, Runway also has a steady source of income from its paid users. The application also has a free version for general users, but is limited in the number of photos and the length of the video created.

By: BI