Moonvalley Secures $43 Million in Fresh Funding Following Launch of AI Video Model
Los Angeles-based AI startup Moonvalley has raised $43 million in new venture capital, according to a recent SEC filing as reported by TechCrunch.
The document lists 11 undisclosed investors and follows closely on the heels of Moonvalley’s debut of its AI-powered video generation tool, Marey. The company had previously secured $70 million in seed funding from prominent backers like General Catalyst, Khosla Ventures, and Bessemer Venture Partners.
A spokesperson for Moonvalley told TechCrunch that the SEC filing does not represent the final fundraising figure, which will be officially confirmed and announced in the coming weeks.
Standing Out in a Crowded Market
The AI video creation field has become increasingly competitive, with startups like Runway and Luma, along with industry giants such as OpenAI and Google, rapidly releasing new models. This rapid growth has led to concerns about oversaturation, as many products offer similar features.
TechCrunch reports that Moonvalley’s Marey model, developed alongside the AI animation studio Asteria, aims to differentiate itself with enhanced customization. Users can control fine details such as camera angles and motion dynamics, producing up to 30 seconds long high-definition clips. Notably, the company highlights Marey's reduced legal risk compared to competitors.
A Focus on Licensing and Creator Protections
Unlike many other AI video startups that train their models using public data, which often includes copyrighted material, Moonvalley is taking a cautious approach. The company is working with partners to license and curate its training datasets, purchasing video content like Adobe’s use of its Adobe Stock platform.
This strategy is designed to mitigate legal challenges, as rights holders have increasingly pushed back against the use of copyrighted material in AI training, filing complaints, and cease-and-desist orders against other companies in the field.
Also read: Lumai Secures Over $10 Million to Revolutionize AI Computing with Optical Technology
Commitment to Ethical AI Development
According to TechCrunch, the rise of AI-generated video tools has sparked significant concern among creators and industry professionals. A recent study by the Animation Guild projected that over 100,000 US film, television, and animation jobs could be impacted by AI technologies by 2026.
Moonvalley is committed to protecting creator rights by allowing content removal from training data, offering customers the option to delete personal data, and providing indemnity protection against copyright disputes.
The company is also enforcing ethical safeguards to prevent the generation of explicit content or videos of individuals and celebrities without consent, following responsible AI practices similar to OpenAI's Sora model.
