Runway, Luma in Talks for Multibillion-Dollar Fundraises as Revenue Picks Up

Startups that use artificial intelligence to make videos for Hollywood studios and amateur filmmakers are getting thirsty for more capital.

Runway, a startup that has cut deals with Lionsgate and AMC Networks, is in talks with investors to raise around $500 million at a valuation of at least $5 billion before the investment, or 67% higher than the six-year-old company’s last round a year ago, according to two people with direct knowledge of the round.

Meanwhile, its younger rival, Luma AI, is aiming to raise at least $1.1 billion at a valuation of at least $3.2 billion, before the investment—nearly 13 times its valuation from early 2024, according to someone close to the company. It has been in talks with investors in the Middle East about leading the round, this person said.