Moonvalley, an AI video startup, secures $43M in new funding according to SEC filing

Los Angeles-based AI startup Moonvalley has recently secured $43 million in venture capital, as indicated by an SEC filing disclosing 11 unnamed investors. This funding round closely follows Moonvalley’s introduction of Marey, their maiden AI video-generating model. In the past, Moonvalley had already received $70 million in seed funding from major investors like General Catalyst, Khosla Ventures, and Bessemer Venture Partners.

Moonvalley’s spokesperson informed TechCrunch that the disclosed amount in the filing is not final and will be officially announced in the upcoming weeks. With the proliferation of video generation tools in the market, many vendors are entering the space, leading to concerns of oversaturation. Startups such as Runway and Luma, alongside tech giants like OpenAI and Google, are rapidly releasing their models, creating a crowded landscape where differentiation can be challenging.

Marey, Moonvalley’s latest model developed with AI animation studio Asteria, offers advanced customization features like precise camera and motion controls. The model is capable of producing high-definition video clips up to 30 seconds in length. Moonvalley claims that its model poses a lower legal risk compared to other video generation tools due to its collaboration and licensing arrangements with partners to ensure copyrighted data usage compliance.

Many generative video startups rely on public data for model training, potentially involving copyrighted material, leading to legal disputes with rights holders. Moonvalley’s strategy involves working with partners to source licensed video footage and datasets to mitigate legal risks. This approach mirrors Adobe’s use of video footage from creators through its Adobe Stock platform for training purposes.

The advent of generative video technologies raises concerns among artists and creators who fear the disruption of traditional film and television industries. A 2024 study conducted by the Animation Guild forecasts that over 100,000 jobs in the U.S. film, television, and animation sectors could be impacted by AI by 2026. In response, Moonvalley is implementing measures to address copyright concerns by enabling content removal requests from creators, allowing users to delete their data, and offering indemnity protection against potential copyright infringements.

To ensure responsible use of its tools, Moonvalley plans to incorporate safeguards into its models, similar to OpenAI’s Sora. These measures include blocking inappropriate content, such as NSFW material, and preventing the generation of videos featuring specific individuals or celebrities at the user’s request.

In conclusion, Moonvalley’s recent funding round underscores the growing momentum in AI-based video generation technology while highlighting the importance of responsible AI usage and legal compliance in the evolving media landscape.