In a move signaling the next phase of Hollywood’s AI revolution, New York-based generative AI company Runway has raised $308 million in Series D funding—bringing its total to $545 million and valuing the startup at a reported $3 billion. The funding round, led by General Atlantic with participation from NVIDIA, Fidelity, SoftBank Vision Fund 2, and others, comes as Runway expands its AI-powered content creation capabilities and deepens its reach into the film and television industry.

Runway’s headline-grabbing deal with Lionsgate in late 2023 was just the beginning. Now, with fresh capital in hand and the release of its next-generation Gen-4 AI model suite, Runway is doubling down on its ambition to create “world simulators”—technology capable of producing consistent characters, locations, and visual elements across scenes with unprecedented control. The company’s AI tools are already helping Lionsgate cut costs across pre- and post-production, with studio vice chairman Michael Burns claiming they’re saving “millions and millions of dollars.”

CEO and co-founder Cristóbal Valenzuela called the new funding “a significant next step toward our goal of creating a new media ecosystem.” In a blog post, he noted, “These advancements aren’t merely incremental improvements; they form the foundation for an entirely new approach to media—an ecosystem built on AI systems that can simulate our world.”

For a company founded in 2018, Runway’s trajectory has been meteoric. What began as a research-forward generative AI platform is now quickly evolving into a production partner—one that’s not just selling tools to studios, but building its own AI-native animation and film content through Runway Studios. The new capital will fuel this expansion, including recruiting top AI engineers and researchers to further develop its proprietary media foundation models.

Runway’s rise reflects a broader industry trend: AI is no longer a distant curiosity, but a fast-moving production force. As studios look to manage spiraling costs, increase production volume, and navigate post-strike labor challenges, tools like Runway’s are quickly becoming essential components of the new production pipeline.

For film and TV production stakeholders—from financiers to studio operators to post houses—this isn’t just a tech story. It’s a business story. AI-driven solutions like Runway are reshaping workflows, shrinking timelines, and unlocking creative experimentation that was either too expensive or logistically impossible just a few years ago.

And with investors like NVIDIA and SoftBank doubling down on content infrastructure, it’s increasingly clear that the intersection of AI and storytelling is more than hype—it’s the future. As Runway builds toward a new production paradigm, the rest of the industry is now faced with a choice: adapt, adopt, or risk falling behind.