From Fortune: 2024-03-28 19:28:07

Cristóbal Valenzuela, CEO of AI startup Runway, discusses the impact of OpenAI’s new text-to-video tool Sora on the entertainment industry. Runway, with a $1.5 billion valuation, faces direct competition with OpenAI’s larger size and Microsoft backing. Runway’s AI tools have been used in music videos and movies, but faces challenges in an increasingly crowded market.

Runway, a New York City-based startup, aims to democratize filmmaking by empowering creatives worldwide. With accolades from the Oscar-winning film “Everything Everywhere All at Once” and partnerships with musicians like Madonna, Runway’s AI tools have gained popularity. The company’s revenue increased 24-fold in 2023, but faces competition from other AI video tools.

OpenAI’s new video tool Sora has injected a sense of urgency into Runway’s operations, with CEO Valenzuela emphasizing the need to innovate faster. OpenAI, with over 700 employees and Microsoft backing, poses a significant challenge to Runway’s market position. The race to dominate the AI video market is heating up, with implications for the future of filmmaking and entertainment.

AI in Hollywood is a contentious issue, with concerns about job displacement and copyright infringement. Recent Hollywood strikes highlighted fears of AI replacing industry jobs, leading to uncertainty in the industry’s future. Runway and other AI startups face legal challenges over copyright, raising questions about the ethical use of AI in creative industries.



Read more at Fortune: As OpenAI targets Hollywood with Sora, Runway’s CEO is waiting for the $86 billion Goliath with a ‘sling and a stone’