Runway Shows There’s Money to Be Made in AI Video Too; ‘Scaling Laws’ and Reasoning Dominate NeurIPS
AI-generated video seems to be having somewhat of a renaissance this month: OpenAI released its long-awaited Sora video model last Monday and startup Pika released an updated version of its video AI on Friday.
Still, the question remains as to whether video model developers can make money off such tools, especially given how expensive and finicky they can be to run. (OpenAI, for instance, suspended signups to Sora last week due to heavy traffic, the company said.)
A positive piece of evidence comes to us from Runway, a New York-based firm that was one of the earliest entrants in the AI video market. The startup expects to reach $84 million in annualized revenue this month, up from $28 million in June, my colleague Sri recently reported. It then expects that figure to triple to $265 million by the end of next year.
Runway’s revenue isn’t huge, but it’s not nothing. In fact, that’s a faster growth rate than some other hotshot AI startups like Perplexity, which are valued much more highly.
Related Knowledge Center: Artificial intelligence
On top of a failing business model, newsrooms must navigate the powerful — and not fully reliable — new capabilities of artificial intelligence and the deployment of large language models.
State of the business model | Copyright and intellectual property