Pika, a key player in the AI video-generation sector, has raised $80 million in investment, reflecting the increasing focus of venture capital in artificial intelligence. With a valuation of $470 million, Pika aims to compete with industry giants by offering unique video creation technology and a dedicated team of experts.
SAN FRANCISCO — AI video-generation start-up Pika has secured $80 million in investment, highlighting continued venture capital interest in the artificial intelligence sector. Pika, along with other AI video start-ups such as Runway and Synthesia, is receiving significant funding as AI video-generation emerges as a new technological frontier. In the first quarter of 2024, investment in AI and machine-learning companies reached $25.9 billion, up from $21.7 billion the previous year, according to data from PitchBook.
Pika’s technology allows users to create short AI-generated videos from text prompts, with the ability to modify video length, trim sections, and alter elements like clothing. Despite the complex and costly process of AI video creation, Pika’s proprietary foundation model, developed independently of other AI firms, aims to carve out a share of the market before offerings from larger companies like OpenAI and Google become available.
The recent funding round, led by Spark Capital, Lightspeed Venture Partners, and Greycroft, values Pika at $470 million. The firm was founded by former Stanford AI PhD students Demi Guo and Chenlin Meng, who left their programs to launch the company. Pika’s team of 13 includes former researchers from major tech companies such as Google, Meta, and Uber. Guo, who serves as CEO, expressed confidence in the company’s ability to compete with more established and well-funded rivals.
The funding round brings Pika’s total investment to $135 million. As AI video tools continue to develop, the company faces competition from larger AI companies like OpenAI, which have substantial financial and staffing resources. While deepfake imagery and AI-generated content have already influenced sectors such as social media and politics, companies like Pika seek to refine and expand capabilities within the realm of video-generation technology.
