Luma AI just scored $900 million, now valued at $4 billion
Luma AI, a fast-rising AI startup, has landed a massive $900 million investment led by Saudi Arabia's Public Investment Fund (PIF), with big names like Andreessen Horowitz and Matrix Partners joining in.
This fresh funding now puts Luma's value at $4 billion—making it one of the hottest players in the booming AI space.
What makes Luma AI stand out?
Luma builds advanced AI tools that turn video, audio, and text into high-quality videos and images. Their flagship platform, Dream Machine, helps creators make synthetic videos for everything from movies to marketing.
A few weeks ago, the company released Ray3, a reasoning model. "Ray3 performs better than OpenAI's Sora on multiple benchmarks, and is similar in performance to Google's Veo 3," Jain said.
Big tech partners like Adobe, AWS, and NVIDIA are already on board.
What's next for Luma?
With this new funding, Luma plans to supercharge its tech using a giant 2-gigawatt compute cluster (thanks to PIF) and train even smarter models.
They're also eyeing rapid growth in India and other emerging markets—especially among creative studios looking for cutting-edge production tools.