Chloe Ladwig/PitchBook News
Billions of dollars are flowing into AI video generation, and the market is just getting started.
In the past five years, investment in startups developing AI video and media tech has more than tripled, according to PitchBook data. Funding this year is already at its highest level yet, with $5.6 billion invested, up over 43% from 2025's annual total.
Startups building video-generation models have captured most VC dollars, converging around a clutch of well-funded companies, including Runway and Luma AI. That race has not ended, and neither has the funding, but new parts of the market are beginning to draw more attention.
This week's $75 million investment in indie film studio A24 by Google DeepMind is a clear example, with the two companies partnering to develop AI tools for filmmakers. Google gaining access to A24's creatives and research signals that the market is opening up beyond just funding the best video-generation tool.
Billions of dollars are flowing into AI video generation, and the market is just getting started.
In the past five years, investment in startups developing AI video and media tech has more than tripled, according to PitchBook data. Funding this year is already at its highest level yet, with $5.6 billion invested, up over 43% from 2025's annual total.
Startups building video-generation models have captured most VC dollars, converging around a clutch of well-funded companies, including Runway and Luma AI. That race has not ended, and neither has the funding, but new parts of the market are beginning to draw more attention.
This week's $75 million investment in indie film studio A24 by Google DeepMind is a clear example, with the two companies partnering to develop AI tools for filmmakers. Google gaining access to A24's creatives and research signals that the market is opening up beyond just funding the best video-generation tool.
4 months ago
