Artificial intelligence video generation startup Runway AI Inc. is reportedly in talks to raise $450 million in new funding on a $4 billion valuation at a time when AI startups remain a bright spot in a still somewhat muted venture capital market.

The report comes from The Information, which references a person involved in the deal and a person who spoke with Runway executives. The fundraising talks reportedly involve VC firm General Atlantic.

Founded in 2018, Runway offers an AI platform that enhances the video creation and editing process. In the company’s own words, it is “building artificial intelligence systems to usher in a new era for creativity where the best stories are yet to be told.” Runway’s platform offers a suite of creative tools that are designed to simplify and improve the workflow for both professional videographers and hobbyists, including real-time video editing, automated rotoscoping and motion tracking.

The company’s AI-powered solutions are aimed at reducing the time and effort required to produce high-quality video content. For example, its automated rotoscoping tool can quickly and accurately separate foreground elements from the background, a task that traditionally requires significant manual effort.

Another feature offered by Runway, motion tracking, allows users to track and apply effects to moving objects within a video. The automation helps streamline the editing process and make it more accessible and less time-consuming.

Runway was last in the news on June 17 when it launched Gen-3 Alpha, a new AI model that can generate 10-second videos based on text prompts. The model can generate higher-fidelity videos than previous models and, Runway claims, is better at depicting motion.

The company is also developing a new set of safety features to ensure that its AI video service is not used to generate harmful content. As part of the effort, the company will add a provenance system based on C2PA standard, a standard developed by an industry consortium that includes Intel Corp., Arm Holdings plc and other large tech companies.

Coming into its potential new venture capital round, Runway has raised $237 million in funding to date, including rounds of $141 million in June 2023 and $50 million in December 2022. Investors in the company include Google LLC, Nvidia Corp., Salesforce Ventures LLC, Felicis Ventures, Amplify Partners, Lux Capital Management, Coatue Management and Madrona Venture Group.

Photo: Runway