• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
AIStartups & Venture

Runway’s AI transformed films. The $3 billion startup’s founders have a bold, new script: building immersive worlds

Allie Garfinkle
By
Allie Garfinkle
Allie Garfinkle
Term Sheet Editor
Down Arrow Button Icon
Allie Garfinkle
By
Allie Garfinkle
Allie Garfinkle
Term Sheet Editor
Down Arrow Button Icon
July 3, 2025, 9:00 AM ET
Runway CEO and cofounder Cristobal Valenzuela
Runway CEO and cofounder Cristobal ValenzuelaKyle Grillot/Bloomberg via Getty Images

In 1874, the First Impressionist Exhibition was a disaster. 

Recommended Video

Artists like Claude Monet, Pierre-Auguste Renoir, and Edgar Degas were ridiculed, their work described by critics as “base,” “unfinished,” and the worst thing to ever happen to art. A commercial flop, the exhibition saw 3,500 visitors, who mostly sauntered by to express horror at the plain frames and individual brushstrokes. 

About a decade later, Georges Seurat would start A Sunday Afternoon on the Island of La Grande Jatte. Seven feet tall and ten feet wide, Sunday would become the most famous example of an Impressionist offshoot technique, pointillism. 

Sunday’s central conceit was simple—one detailed image of a bustling afternoon at a Parisian park on the Seine. If you looked closely, you could see distinct spots of color and light that zoomed out into parasols, instruments, hats, humans, and a monkey on a leash. Each image could be unraveled, deconstructed into individual dots—the pixels of an analog age. And there’s a direct throughline between Seurat and the Impressionists and Total Pixel Space, the winning film at this month’s Runway AI Film Festival (AIFF). 

“Pixels are the building blocks of digital images, tiny tiles forming a mosaic,” the film’s velvety voiceover says. “Each pixel is defined by numbers representing color and position. Therefore, any digital image can be represented as a sequence of numbers…Therefore, every photograph that could ever be taken exists as coordinates. Every frame of every possible film exists as coordinates. Every face that could ever be seen exists as coordinates. To deny this would be to deny the existence of numbers themselves.”

Jacob Adler, who made Total Pixel Space, is a classically-trained musician and composer, a multidisciplinary artist rendered a filmmaker by advances in AI. Adler worked on the film for more than a year, generating tens of thousands of images along the way, inspired by Jorge Luis Borges’s short story “The Library of Babel” and the miracle of making sense in a random, vast world.

“I was fascinated by the act of generating these images, and it spawned all these philosophical questions,” said Adler. “In this vast combinatorial space of language, the overwhelming majority of combinations of letters are gibberish and nonsense. So, apply that to digital imagery: How many images can possibly exist? And how many of these images are incomprehensible noise? I tried expressing this idea in other media, and it just failed. But it came together as a short AI film.”

Runway, the $3 billion AI video startup, has hosted the AIFF since 2023 to showcase short films made with AI. This year’s festival—won by Total Pixel Space—marked a major leap: from 300 submissions in small NYC theaters in 2023 to a sold-out Lincoln Center show with 6,000 submissions, drawing an international crowd. Runway didn’t pick the winner—a panel of judges, including directors Harmony Korine and Gaspar Noe, made the call—but Total Pixel Space reflects how Runway is thinking about its own future: AI-generated experiences that don’t just tell stories but build worlds.

“We’re going to have all these new forms of media that go beyond film and games, that exist in all the spaces in-between,” said Anastasis Germanidis, Runway CTO and cofounder. “Some of it might look more like immersive theater productions, where there’s a fixed storyline, but you can kind of move around, experiencing it from different perspectives.”

Germanidis added: “Imagine these models get really good at generating realistic depictions of reality, and you have a world where you can essentially simulate most of what we care about as we navigate the world. That’s going to be both a very important piece of solving problems.”  

Germanidis is thinking about world simulation as a principle more than anything else; one that could be applied not just to stories, but to biology, robotics, and physics. It’s distinctly about finding ways to mimic not just humans, but physics and biology. 

“We want to be able to simulate pretty much every instruction you have in the physical world,” said Cristóbal Valenzuela, CEO and cofounder of Runway. “We know that’s coming…AI labs have been very obsessed with simulating the human mind. But I think that might be the wrong approach long-term. What you want to do is not simulate how humans work, but how the world works.”

We’re seeing the beginnings of this strategy play out this week, as Runway plans to launch an interactive gaming experience, marking a push into the gaming market. The product right now is text and image generation, but is expected to become increasingly visual over time. How this all will ultimately lead to world-building applications is hazy—and that’s part of the point. 

“If you have a predetermined way of getting there, it’s too late and it’s obvious,” Valenzuela said. “For me, it goes back to how creative [something is]…. If you’re not involved in creative acts, you don’t understand. Most people who have any form of creative expression within their work know that when they start, they don’t exactly know where they’re heading. You’re putting yourself in a very vulnerable position to just explore everything. Then, eventually you’ll know by experience that you will have to land somewhere.”

Runway has no shortage of competition in AI video generation—including but not limited to OpenAI’s Sora, Stability AI, Moonvalley, and Pika Labs. And Runway is in the position where they must continue to distinguish themselves in order to compete. The company has raised more than $500 million to date from investors like General Atlantic, SoftBank, Nvidia, Salesforce Ventures, Felicis, and Coatue. Meta reportedly approached Runway in an attempt to acquire the company before dropping billions on Scale AI this summer.  

The AI “wake up” call

The history of art is a history of technological disruption, from the invention of the printing press to the advent of “talkies” in the 1920s. Job displacement is, of course, part of that story—and always has been. 

“Before the printing press, it was all monks and people who knew how to share specific stories,” said Valenzuela. “Then, with the printing press, more people could read and write, which was treated as an apocalyptic event.”

This is true: When the printing press was invented in 1440 and adoption of the technology spread, religious authorities worried about losing control, and guilds of scribes were displaced. But a world of people could now read, and stories could scale. 

Valenzuela brings up another example, this one infused with a comically droll element: 

“Before alarm clocks were invented, you’d hire a guy who came to your door, at the time you wanted, and throw up a stone to your window,” said Valenzuela. “That was a job. What else were you going to do if you didn’t have family around and needed to wake up?”

In 19th-century Britain and Ireland, these people were called “knocker-uppers.” They’d tap on windows with long sticks or shoot peas at windows to wake workers for shifts. Once alarm clocks were invented, it became natural for people to just, well, use alarm clocks. As AI comes tapping at Hollywood windows, a trend that Valenzuela is directly involved in, the industry reaction has been fraught—even as people secretly use it. 

“It’s been a little dirty secret, because whether it’s Runway or, you know, he does have a little competition,” said Michael Burns, vice chair at Lionsgate onstage at AIFF, gesturing to Valenzuela. “We believe that this tool is being used by everybody that doesn’t talk about the fact that they’re using it.”

Runway’s Germanidis says there are three phases of technological art evolution: getting the technology to work, imitating existing art forms, and then creating unique forms. We’re just starting to “enter that third stage with, like generative generative models,” he said. That’s not to say, of course, that everything should be AI—for Adler, an artist whose practice has fundamentally expanded with AI, is very clear that some things (like surrealistic images and philosophical concepts) are well-suited to AI, whereas other material (like complex human interactions) isn’t. 

“I look at [AI] as a tool, but I don’t know yet if I’m convinced that it’s a new genre,” said Adler. “There are things I can produce with cameras that are impossible with AI and vice versa—things I can do with AI that are impossible with cameras.”

That alone is an incredible phenomenon that speaks to excitement, and fear, that Runway and its video AI rivals are already causing throughout the worlds of art, media, and entertainment. For Runway’s founders however, the real payoff of their AI vision, if they can pull it off, will extend far beyond the screen, existing as something spectacular, immersive—and probably unrecognizable.

In 2001, Fortune first convened the smartest people we know, bringing together CEOs and founders, builders and investors, thinkers and doers. Since then, Fortune Brainstorm Tech has been the place where bold ideas collide. From June 8–10, we will return to Aspen—where it all began—to mark 25 years of Brainstorm. Register now.
About the Author
Allie Garfinkle
By Allie GarfinkleTerm Sheet Editor
LinkedIn iconTwitter icon

Allie Garfinkle is a senior writer and editor at Fortune, where she runs Term Sheet; leads coverage of private capital, investors, and startups; and co-chairs the Brainstorm conference series.

See full bioRight Arrow Button Icon

Latest in AI

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in AI

Why CEO Bill McDermott says ServiceNow’s 39% stock crash is Saaspocalypse ‘nonsense’ and why AI will make it a trillion-dollar company
AIServiceNow
Why CEO Bill McDermott says ServiceNow’s 39% stock crash is Saaspocalypse ‘nonsense’ and why AI will make it a trillion-dollar company
By Alexei OreskovicMay 8, 2026
24 minutes ago
amit
AISoftware
$96 billion giant ServiceNow doesn’t see a ‘SaaSpocalypse.’ It sees the ‘hard lift, heavy lifting’ phase just beginning
By Nick LichtenbergMay 7, 2026
7 hours ago
Indosat CEO Vikram Sinha is building an AI for Indonesia’s local languages. Can he make a business case for sovereignty? 
AsiaAsia Agenda
Indosat CEO Vikram Sinha is building an AI for Indonesia’s local languages. Can he make a business case for sovereignty? 
By Nicholas GordonMay 7, 2026
11 hours ago
PARIS, FRANCE - JUNE 16: Chief Executive Officer of SpaceX and Tesla and owner of Twitter, Elon Musk attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition centre on June 16, 2023 in Paris, France. Elon Musk is visiting Paris for the VivaTech show where he gives a conference in front of 4,000 technology enthusiasts. He also took the opportunity to meet Bernard Arnaud, CEO of LVMH and the French President. Emmanuel Macron, who has already met Elon Musk twice in recent months, hopes to convince him to set up a Tesla battery factory in France, his pioneer company in electric cars. (Photo by Chesnot/Getty Images)
AIElon Musk
Elon Musk called Anthropic ‘evil’ 3 months ago. Now he’s taking $4 billion to become its data landlord
By Eva RoytburgMay 7, 2026
12 hours ago
keynes
AIdisruption
The AI job apocalypse is ‘unhelpful marketing, bad economics and worse history,’ a16z says
By Nick LichtenbergMay 7, 2026
14 hours ago
Stripe CEO Patrick Collison says a wave of token theft is wreaking havoc on the AI economy
CybersecurityStripe
Stripe CEO Patrick Collison says a wave of token theft is wreaking havoc on the AI economy
By Jeff John RobertsMay 7, 2026
15 hours ago

Most Popular

U.S. Treasury will have to borrow $2 trillion this year just to continue functioning—more than $166 billion every month
Economy
U.S. Treasury will have to borrow $2 trillion this year just to continue functioning—more than $166 billion every month
By Eleanor PringleMay 7, 2026
21 hours ago
California farmers must destroy 420,000 peach trees after Del Monte closes its canneries and cancels more than $550 million in long-term contracts
North America
California farmers must destroy 420,000 peach trees after Del Monte closes its canneries and cancels more than $550 million in long-term contracts
By Sasha RogelbergMay 7, 2026
12 hours ago
Tokyo is throwing out its strict office dress code and asking workers to wear shorts amid the war in Iran energy crisis
Success
Tokyo is throwing out its strict office dress code and asking workers to wear shorts amid the war in Iran energy crisis
By Emma BurleighMay 5, 2026
3 days ago
A Michigan farm town voted down plans for a giant OpenAI-Oracle data center. Weeks later, construction began
Magazine
A Michigan farm town voted down plans for a giant OpenAI-Oracle data center. Weeks later, construction began
By Sharon GoldmanMay 6, 2026
2 days ago
The IRS may owe COVID-era refunds to tens of millions of taxpayers. Here’s who could qualify
Personal Finance
The IRS may owe COVID-era refunds to tens of millions of taxpayers. Here’s who could qualify
By Sydney LakeMay 6, 2026
2 days ago
The 'PayPal Mafia' built a $1.5 billion fintech pioneer. The company they left behind is on life support
Startups & Venture
The 'PayPal Mafia' built a $1.5 billion fintech pioneer. The company they left behind is on life support
By Eva RoytburgMay 6, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.