Runway is expanding its focus from developing AI video models to actively cultivating the applications built upon them. The company is introducing a Builders program that provides free API credits to startups from seed through series C stages, signaling its ambition to foster an ecosystem centered on what it terms "video intelligence."

As a frontrunner in AI video generation, Runway's tools are widely utilized in film, advertising, and marketing. However, following the debut of its "general world models" last December, the company is now extending its reach beyond creative applications into wider use cases. It aims to collaborate with startups to explore possibilities that lie beyond its internal scope. Runway's investment thesis is categorized into three areas:

Technical teams that are advancing the cutting edge of AI and developing novel architectures. Builders who are creating the application layer on top of foundation models to bring AI into new scenarios. Companies that are experimenting with innovative forms of media creation, storytelling, and distribution. For approximately the past eighteen months, Runway has discreetly supported a select group of early-stage founders and companies, according to Ortiz. These include LanceDB, which develops databases for AI applications, and Tamarind Bio, which employs AI to design new proteins for drug discovery. Some startups, such as real-time audio generation company Cartesia, are working on products that synergize with Runway's own offerings. "LanceDB is building the infrastructure layer that makes that possible, and Runway is one of the few investors who understands why that matters."

To date, Runway has secured nearly $860 million from investors including Nvidia and the Qatar Investment Authority, achieving a post-money valuation of approximately $5.3 billion. The company seeded its $10 million fund with support from existing investors and close partners, with intentions to issue checks of up to $500,000 for pre-seed and seed-stage startups. Runway is not alone among AI startups in beginning to invest in newer companies. OpenAI pioneered this approach with its Startup Fund, while AI search startup Perplexity launched a $50 million venture fund last year for seed-stage startups. Additionally, CoreWeave established CoreWeave Ventures in September to back AI companies. "Many companies like ours are investing heavily on the primitives that will unlock a new set of applications or new types of companies," Ortiz stated. "Companies like ours that are still fairly small with only 150 people can’t focus on everything. But we do see opportunities in partnering very early with new teams that can benefit from what we’re doing."

Building with Characters

This same philosophy underpins Runway's new Builders program. Eligible early-stage startups can now apply to receive 500,000 API credits and gain access to Characters, Runway's recently launched real-time video agent API powered by its new family of general world models. Characters enables users to interact with generative AI agents in real time, complete with a face and voice that can vary from cartoonish to photorealistic. Part of the program's design is to discover what startups will create using this technology. "Until [recently], we didn’t have the possibilities of talking to a real-time video agent, so we are really trying to see which teams see the potential and positive impacts of this technology," Ortiz explained.

The program is already active, with an inaugural cohort that includes Cartesia, MSCHF, Oasys Health, Spara, Subject, and Supersonik. These companies are leveraging Characters to power applications such as AI customer support agents, interactive brand characters, personalized onboarding experiences, real-time sales assistants, and synthetic media tools. Ortiz expressed particular enthusiasm for the potential in telemedicine and education. Given that entertainment is Runway's core domain, he also anticipates Characters being used in gaming and novel entertainment experiences. "This is part of our general world models, which is what we’re pushing for next: a set of models that are interactive, real-time, and immersive," Ortiz said. "When you start combining all of these pieces, you can imagine that you will be able to generate and simulate entire environments, and participate and have conversations with the characters in these worlds."

Other startups like Inworld and Charisma are also developing interactive AI characters for games and storytelling, while companies such as StoReel are experimenting with AI-generated shows that users can engage with directly. Some platforms, like Character AI, have already gained popularity for their conversational AI characters. "We do really believe that there’s a new kind of internet that’s going to be more personalized, more immersive, and in real-time," Ortiz concluded.