Runway raised $315 million in Series E funding at a $5.3 billion valuation, nearly doubling its previous valuation. According to TechCrunch, the round was led by General Atlantic and will fund development of what Runway calls its next generation of world models, which are AI systems that build internal representations of environments to predict future events.

  • World models as core strategy. According to TechCrunch, Runway released its first world model in December 2025 and now views the technology as central to applications across medicine, climate, energy, and robotics. We previously covered Runway's Act-Two performance capture system.

  • Expanding beyond media. While Runway built its customer base in media, entertainment, and advertising, the company is increasingly seeing adoption in gaming and robotics, a shift that signals ambitions well beyond filmmaking tools.

  • Competitive pressure. Runway's world model push comes as Fei-Fei Li's World Labs and Google DeepMind both released competing models.

The takeaway: Runway is repositioning itself as a world models company, not just a video generation tool. The funding and product roadmap suggest the company sees world models as the next frontier for AI capabilities—with applications far broader than creative tools.

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