Runway bets on world models to outpace Google in AI

AI video startup Runway, founded in 2018 by three NYU Tisch alumni, is pivoting from text-based AI to world models trained on video data. Co-founder Anastasis Germanidis argues that language models are limited by human knowledge, while world models can learn directly from observational data. Runway has raised $860 million, including a $315 million round from AMD Ventures and Nvidia, and is valued at $5.3 billion. It added $40 million in annual recurring revenue in Q2 2026. The company has launched its first world model and plans another this year, targeting applications in robotics, drug discovery, and climate modeling. Competitors include Google (Veo, Genie), Luma AI, and World Labs. Runway's tools have been used in films like 'Everything Everywhere All At Once' and it has deals with Lionsgate and AMC Networks. The company has 155 employees across New York, London, San Francisco, Seattle, Tel Aviv, and Tokyo. Co-CEO Cristóbal Valenzuela credits their non-Silicon Valley background for a scrappy culture.