In short
Runway CEO Chris Valenzuela discusses frontier AI video in 2025, focusing on Runway’s model releases Gen4 and Aleph, the shift from language prompting to video/annotation-based control, and how AI video is moving from “demos” to professional adoption (VFX, advertising, filmmaking). He also reflects on Runway’s AI Film Festival growth and what’s next for real-time “AI worlds.”
Guest backgrounds
Chris Valenzuela is CEO of Runway, a foundational AI research lab/company making generative video models. Matt Turk is the interviewer and a FirstMark partner.
Key claims
Early conviction despite rejection; AI video is a “new camera/medium.” Adoption is now in an “integration phase,” not just enthusiasm. Professionals will iterate at scale (generate many options, pick best), and AI helps “last-mile” VFX to save time. Gen4/Aleph aim for generalized video models using “in-context” instructions rather than specialized models.
Notable examples
Aleph modifies an input video using annotations (e.g., arrows/drawings) rather than only text. Hollywood uses it for editing, removing/adding elements, and generating coverage/B-roll; Valenzuela cites a streaming show using Runway for establishing shots and B-roll. Runway’s Film Festival grew from ~300 submissions (2022) to ~6,000, sold out Lincoln Center, then screened via IMAX nationwide.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Chapters
Tap a time to open that second in VOThe Journey of Conviction in AI
0:00 to 0:28
Explore the challenges faced when pursuing AI innovation against skepticism.
“We had conviction around something that very few people had conviction around.”
Runway's Game-Changing AI Models
0:47 to 1:46
Discussion about Runway's new AI models and their impact on video creation.
“It's a really good model that allows you to do something that I think was previously not possible with AI models, which is you don't prompt the model with just language.”
AI Film Festival Insights
1:46 to 3:08
Chris shares insights from the AI Film Festival and its growth over the years.
“So every year you guys at Runway do this very fun thing called the AI Film Festival.”
Shifting Perceptions in Filmmaking
3:08 to 3:56
Discussion on the changing relationship between AI and the filmmaking community.
“I would say of starting with this very small venue in like Chinatown, trying to like get people to come to like films and AI films and watch what it meant three years ago was felt, felt like niche and small now.”
AI's Role in Filmmaking Processes
3:56 to 6:44
Exploration of how AI tools are transforming traditional filmmaking methods.
“What's the latest on your relationship with the filmmaking community and Hollywood?”
Expanding Use Cases of AI in Creative Industries
6:44 to 8:38
Discussion on the broadening use cases for AI technology beyond filmmaking.
“Do they do like sort of background stuff or do they do entire scenes?”
AI and Advertising: A New Frontier
8:38 to 11:59
Understanding the impact of AI on the advertising industry and its adoption.
“has expanded pretty dramatically over the last 12 months.”
Adapting to AI in Creative Processes
11:59 to 13:56
Insights on how professionals adapt their creative processes with AI technology.
“like people get too obsessed with their craft, with the things they know.”
Embracing Fresh Perspectives in AI Video
14:00 to 15:30
Learn how fresh minds approach AI video without preconceptions.
“Then is that a question of taste, you know, which is the keyword of 2025 that you find in a lot of AI related conversations?”
The Early Days of Runway and AI Conviction
15:30 to 17:40
Discover the challenges Runway faced while building an AI company in its infancy.
“One of the fascinating parts of the runway story is that you guys started in late 2017, early 2018, I believe.”
Show all 30 chapters
The Evolving AI Models: From GANs to Transformers
17:40 to 19:10
Understand the transition from GANs to transformer models in AI video.
“and figuring things out even when few people believe in it.”
Achieving Product Market Fit with Generative Models
19:10 to 21:40
Learn about achieving product market fit through evolving generative AI models.
“was that super obvious to you guys and you started switching away from GANs into Transformer-type models?”
Balancing Research and Product Development
21:40 to 24:10
Explore how Runway balances research and product development effectively.
“I think we started mostly as a product company.”
Innovations in Video Models: Gen 4 and Beyond
24:10 to 28:00
Delve into the specifics of the Gen 4 model and its implications for video creation.
“There's definitely a lot of both people who are just obsessed with one or the other, but I would say these days, the intersection of folks who can speak both languages is a bit more common.”
The Evolution of Software Principles
28:00 to 29:15
Learn how software development is shifting from vertical-specific solutions to principle-based approaches.
“That's the most interesting thing I would say with models that can generalize is that you don't have to customize the product experience to tackle those specific use cases.”
Innovative Input Modalities in AI
29:15 to 30:55
Discover how new input modalities change the way users interact with AI models for video and content generation.
“If you pick those principles well enough, you will scale in ways that you couldn't scale before with traditional software.”
Quality Control in AI Video Production
30:55 to 32:42
Understand the importance of quality assessment and testing in video AI creation.
“You can now generate video or content or media without having to like write a single prompt, which for many, I think, is just totally new.”
Managing Expectations in AI Creativity
32:42 to 36:19
Learn strategies to manage user expectations when using AI tools for creative processes.
“So how do you think about building rigor around evaluation and the testing and feedback?”
Current State and Challenges of Video AI
36:19 to 37:48
Explore the current capabilities and limitations in the field of video AI technology.
“For the first couple of times, it will take you time to adjust until you understand how it works and you start realizing the potential of it and you start understanding how you can bring it in.”
The Progress and Future of AI Models
37:48 to 39:55
Examine the advancements made in AI models and the infrastructure needed for their development.
“You can have a conversation with an assistant.”
Training New AI Models
39:55 to 42:00
Learn about the timeline and complexity involved in training new AI models in the hardware world.
“It takes time to do the right captioning, the right annotation, the right infrastructure around it, the right testing.”
Evolution of AI Video Models
42:00 to 44:32
Learn about the rapid advancements in AI video model development and infrastructure.
“that's been like, what, two and a half years or so, a bit less than two years or two and a half years.”
Data Quality in AI Training
44:32 to 47:28
Discover the importance of data quality and partnerships in AI video training.
“I think what we can share the most is a lot of what we build is very much custom built.”
The Future of Real-Time AI Video
47:28 to 49:56
Explore the potential and implications of real-time AI-generated environments.
“So, like you're in a completely video-generated, AI video-generated environment that keeps being built as you progress.”
Hyper-Personalization in Content Creation
49:56 to 52:08
Discuss the challenges and possibilities of hyper-personalized content experiences.
“Is that something that you think is possible?”
Runway's Business Model and Audience
52:08 to 56:00
Learn about Runway's customer base, business strategies, and pricing models.
“We touch upon a little bit, like this Hollywood, this advertising, this music videos in terms of use case.”
Navigating AI's Competitive Landscape
56:00 to 59:12
Explore how companies in the AI video space compete and innovate.
“I think there are very few companies out there that can do this full stack approach.”
Advice for Future Creatives
59:12 to 1:01:13
Learn the importance of adaptability in the evolving creative landscape.
“I'm curious about the future for Runway for you, but also for the industry and for users.”
Organizational Learning Like AI
1:01:13 to 1:02:57
Understand how companies can learn and adapt like AI models.
“How have you adapted to that whole evolution at Runway?”
Defining Success for Runway
1:02:57 to 1:04:29
Gain insights into the vision for Runway's future and success metrics.
“And in the process of doing that, you're going to change the world somehow.”
Transcript
Automatic transcript. May contain errors.0:00We had conviction around something that very few people had conviction around. When you're alone doing something that no one else believes in, you have to just be insane to try to keep doing it for like long. We had so many people reach out and be like, this is a waste of time. I have emails of some of the best like investors in the world or the best like research in the world telling me I was wasting my time. The journey of AI or creating AIs for like images and video is like not a use case. And every time we heard no, it's like, okay, another one that we need to like hopefully prove wrong. Hi, I'm Matt Turk from FirstMark.
0:29Welcome to the Matt Podcast. Today, we're diving into the world of frontier AI video with Chris Valenzuela, the CEO of Runway. Runway is a foundational AI research lab and technology company whose models help create incredibly impressive AI video and soon entire AI worlds in real time. We covered a bunch of ground in this chat, including Runway's brand new models, Gen4 and Aleph. It's a really good model that allows you to do something that I think was previously not possible with AI models, which is you don't prompt the model with just language. You actually put a video on first and you ask the model to modify that video.
1:04And so for many folks in the industry, it's been kind of a game changer. The looming head-to-head with OpenAI's Sora and Google's Vio. Speed is the uttermost importance these days. We've seen competition come and go for the last six years. I'm confident that we'll continue to lead the way. And the big question, when AI can conjure entire movies, what happens to human taste, craft and storytelling? AI is somehow a new kind of camera. We always speak about it as a new medium in the way that cameras were a medium in the late 1800s. And I think the people who had the most fun, I would say, with these tools and the people who are starting to use it more professionally are the folks who just come with it with fresh eyes, with no preconceptions.
1:43Please enjoy this great chat with Chris. Hey, Chris, thanks for being here. Yeah, thank you for having me. So every year you guys at Runway do this very fun thing called the AI Film Festival. And as we record this, just yesterday you had the showing of the results at various IMAX theaters around the city. Any standouts for you from this year? Yeah, so the Film Festival is a festival we've been putting together since I think 2022. and it's basically open call for filmmakers to submit like films that are somehow using AI. We started and it was a small collection of like artists. We had like, I don't know, 300 submissions.
2:26I think that was the first call was a very small set of submissions from people. This year, it's the third time we've done it. We got like around 6 ,000 submissions from people over the world. And these are like mostly short films. And we sold out the Lincoln Center, which where we did our kind of a premiere, beautiful event, venue here in New York. And then we did a second show in LA. And then after that, we managed to partner with IMAX to do screenings pretty much all over the US to show the winning finalists. And so those are happening, I think this week and next. And then after that, we're going to open the videos so anyone can watch them online.
3:07A couple of reflections, I think, well, it's wild to see the growth. I would say of starting with this very small venue in like Chinatown, trying to like get people to come to like films and AI films and watch what it meant three years ago was felt, felt like niche and small now. And now you're like selling out the Lincoln Center, which, which, which is insane. We had like some great artists and filmmakers in there. It all feels like, I don't know, a very interesting tipping point in terms of adoption of AI, but also how excited are just people in general around AI and the idea that you can make stuff that really moves you.
3:46I think it was at some point many people were less focused on how it was made and more just like the stories themselves were moving, which I think the ultimate goal should be that. What's the latest on your relationship with the filmmaking community and Hollywood? So you and I have had a couple of chats. I think the most recent one we had, which was at our data-driven NYC meetup that we've been doing in New York for a while, you were telling that story about how people used to effectively ignore you when people being professionals in Hollywood were not super responsive. And then one day they started calling you back.
4:28In the kind of like spectrum of like on one hand threat to the other end adoption and enthusiasm, where are we? I think we're beyond enthusiasm and just entirely kind of in the adoption phase for many. I think for every major like disruptive technology, you will have apprehensions at the beginning, questions. Like, again, it's totally new. It's something you've never used before. And so if you don't put your hands and like use it, it's going to be very hard for you to have a full form opinion around it. and I think people forming their own opinions have started to happen over the last year or two years I would say I would say today based on how we work and what I've heard and the people that we work closely with most studios it's not all of them have some sort of like AI strategy or thinking through it which I think is a great reflection of how useful the models have become to many there are many films out there that are using AI these days you might never know about it and I think that's perfectly fine because you want to focus on the story more than anything else.
5:32And there's also many more, I think, creatives and folks below the line who are just very excited about understanding what this means to them. The way I've been sent to speak about it for the VFX community is it's a very intense work that you do when you're working on a movie, specifically on the last mile. And so there's reviews and edits and changes and notes from pretty much everyone involved. And so if you're the person doing the edit and the composite on the details at the end, you're going to work a lot. And you're going to work like 24-7, seven days a week. And in some cases, the changes are so hard that you have to spend too much time on every single frame or modifying them.
6:13If I can give you a tool that helps you do that faster and better, you might have a weekend off. And so that really resonates a lot with people who work in the industry because having a weekend off, sometimes when you're in the final mile of a project, hasn't been feasible before. But now with technology, But I guess you're going to get there and AI will help you and Runway will help you kind of finally have a weekend so you can relax. And so you mentioned VFX. What's an example of how a Hollywood studio would use the product to save a weekend? Do they do like sort of background stuff or do they do entire scenes?
6:49They do. So editing, I would say, professional films involves like many different stages and parts. you take existing footage and you modify it, edit it, like add stuff to it, color grade it, you remove things from it, or sometimes you just generate entire new scenes. Like most of the perhaps science fiction or like superhero movies that you watch are pretty much all generated. Not using AI, but using traditional methods of like CGI. And so where Runway fits in, it's I would say kind of both of those worlds. You can take existing footage and modify it and edit it and remove stuff, add things to it.
7:27we released a model called Aleph a couple of weeks ago. It's a really good model that allows you to do something that I think was previously not possible with AI models, which is you don't prompt the model with just language. You actually put a video on first, and you ask the model to modify that video. And so for many folks in the industry, it's been kind of a game changer. And then if you want to generate new novel stuff that you've never had before, then you can also use the model for that. and that could be called coverage in film where you have one shot but then angles of that same shot from different positions.
8:02You can generate kind of coverage that you couldn't do before or just generate like B-roll, for example. Like, I don't know, there's a show that's coming now and streaming from a major streaming platform that uses runway to create basically the establishing shots and the B-rolls of many of the independent parts of the film. Hollywood and filmmaking, certainly something that I've heard you and you and I have over the years spoken a bunch about, but sort of feels looking in 2025 that this is just one use case and that the spectrum and the range of use cases that runway powers has expanded pretty dramatically over the last 12 months.
8:43Is that fair? Yeah, I think that's a fair representation. And I think it also has to do with our philosophy of really what we're trying to achieve and our vision. we always spoke about runway as a new kind of camera like we always speak about it as a new medium it's a new medium in the way that cameras were a medium in the late 1800s it allowed people and artists and a bunch of people to see the world in completely different ways and the camera gave birth to photography it gave birth to filmmaking and so on I think for me AI is somehow a new kind of camera and that camera has of course obvious applications in the fields where the camera, the real camera is still like useful, which is like cinema and filmmaking and video making and ads, which has been the first stepping stone for video models and world models to function.
9:32But for us, that's the stepping stone. It's the first function. Cameras in the same way were first used mostly for the arts. They were mostly used for like theater recording and stage recording. And then of course film, but then cameras have a bunch of other applications beyond that. cameras are now in like self-driving cars they're in like space they're satellites right they're monitoring many things of of our like organs and bodies and using all sort of different like applications and i think for for our kind of research that we do we kind of see a similar path where you start with the most obvious kind of use cases which happens to be around arts and media and film but then the applications of models can go very deeper and beyond that so we have now customers using runway for like game design we have we have people using it for like architects for architectural rendering we have folks using for e-commerce there's applications in robotics that we're like now i'm gonna gonna spend a bit more time and announce uh some some work that we've been doing there there's like a bunch of different like applications of this idea that you can create moving pixels in hyper realistic ways and so for us is yeah trying to tackle and make sure that we can solve for many other use cases of this new kind of camera.
10:45In terms of the immediate sort of 2025 business, just double click on some of it. Is advertising a key market? Yeah, of course. It's huge. All agencies these days have realized how important it is. I mean, there's no way back the moment you can do something that used to take you weeks in a minute. Like, unless you prefer just suffering and going through the pain of and spending way more time and money, for many people, this becomes just a fundamental tool of how you make ads. And I think videos and specifically advertisers are faster to adopt new technologies because there's less of a tendency to maintain what used to work.
11:25It's too competitive. It's too fast. Customers want more. And so if you can help them do more, then yeah, they're going to, they're using it and most, they will continue to use it even more, I would say. How do you see professionals adapt in their creative process to this new camera? If you can iterate in real time, what does that mean in terms of what your job looks like? It depends. I think it depends on how fixated you are with the past. I think some professionals are very obsessed with how things have worked for a long time, which I think happens to be the case if you look back at history.
12:01like people get too obsessed with their craft, with the things they know. You know, I've been working on this for 20 years. I'm a great blacksmith. Chris, this is how we do things here, you know? And like, yeah, sure, great. But like, you can also do it differently. There's no rules. Like it's, things can be made differently. And so I think there's definitely the hardcore people who are going to like, some of them are still stuck in the way they want to do things. And to me, it's great. I mean, we still have analog cameras and some people still go and like reveal films in like dark rooms. and you can still do it if you want.
12:33Of course, that's a choice. But I think for many is the realization that just this is a new medium and it requires you to rethink from the ground up how you worked before. And sometimes you're going to bring some of the things that are used to to this new world and they're not going to work well. So we'll give you an example. In traditional like editing, NLEs or like in traditional like CGI and graphics software, the way you export is you click export and you kind of like sit there for hours sometimes just to wait for the thing to render. And then you need to hopefully make sure that once you've finished, you watch it and there's no mistakes.
13:08If not, you're going to go back, make the edits, click render and wait a little bit more. AI doesn't work like that. You can technically generate 10 ,000 videos at the same time. It just works that way. And then you can pick the ones that you think are closer to where you need to go and then keep iterating from there. That function of working in quantities is very hard for people who are very attached to their linear way of working. And so sometimes I see people who have worked in the industry for 20 years click generate once and stay there and wait for the thing. I'm like, no, you can generate as many as you want.
13:41It's the same. And it's hard for them first to understand it, but then once you understand it, you're going to start exploring what this means. And I think more people now are falling within that bucket of understanding that this has to function in some way different to how you function in the past. What makes them great at the medium? So there's the willingness to try many things in parallel. Then is that a question of taste, you know, which is the keyword of 2025 that you find in a lot of AI related conversations? What makes them great? And therefore, if I want to start using video at scale in my job today, what do I need to do?
14:21It's not that hard. I think the people that are sometimes like the best or sometimes like newer generations, the younger folks, we have programs that NYU, UCS, MIT, UCLA were like people and teachers are using runway for the classes. And those are the folks that for this, this is very natural for them. This is how they've grown up over the last couple of years using these tools. and I think a common theme there is that they don't have a preconception of how things are supposed to work they're looking at it from fresh eyes and when you're coming at the field with fresh eyes you can ask questions that perhaps you're not supposed to be asking and you're going to explore things that weren't supposed to be exploring because they weren't just possible before and I think the people who had I think the most fun I would say with these tools and the people who are starting to use it more professionally within like films or advertisers or professional use cases are the folks who just come with it with fresh eyes, you know, with no preconceptions of trying to fit this within their previous way of working, but just figure out exactly what's new for them.
15:26And I think that will continue to be the case, yeah. Switching directions a little bit, I'd love to go back to the early days. One of the fascinating parts of the runway story is that you guys started in late 2017, early 2018, I believe. And, you know, there was at a time when the Transformer paper was either not out or just about out. I'm curious about how you sort of thought that you could build an AI company at a time when at least this current phase of AI was not even started. Yeah, it was hard. I think it was hard because I think we had conviction around something that very few people had conviction around.
16:08and I think for us it was worth trying to see if we were right but for many I think it wasn't like worth even trying and I think when you're alone doing something that no one else believes in you have to just be insane to try to keep doing it for like long you know specifically we had so many people reach out and be like this is a waste of time all these images look like bad you know like this is I have emails of some of the best like investors in the world or the best like research in the world telling me I was wasting my time. The journey of AI or creating AIs for like images and video is like not a use case.
16:47And I think we're like partially like maybe obsessed with proving that it worked. And every time we heard no, it's like, okay, another one that we need to like hopefully prove wrong at some point. And so it became like a fuel, you know, we wanted to make sure like we could prove that we were into something interesting here. and I think a lot of it has to do with just being very having conviction when something is not really hot to work around it I think when it's obvious it's too late when when things are like obvious to everyone I think we've we've understood that it just becomes it becomes like a commodity it's too late to it and I think that also becomes the case for us now where we're thinking about stuff that I think people look at us and they're like no it's that's insane and we're like yeah exactly That means that we're into something.
17:33If what we're saying and what we're speaking and what we're doing feels obvious, it's too late. Like, it's not going to matter. And I think that conviction early on has taught us something around just being persistent, you know, and figuring things out even when few people believe in it. What did you start with, like in 2018 or 19? What was the first product? So the first product was, so the vision was pretty much the same today, which is, I was actually reviewing a deck that we had from 2018. We used to, I think, the way people describe AI these days, we used to call it synthetic media back then.
18:08And where our thesis was like, look, we're now able to generate these very small patches of images. And so the first product was a bunch of models that would allow you to generate or use AI in creative ways, sometimes creating images, but in these very blurry and consistent ways. And our thesis was like, this is going to scale. and the moment it scales, you're going to be able to generate anything you want. And so we started with what was possible at the time, which is very small. It was using GANs at the time and LSTMs for writing tags, a set of experiments of products that you can plug into existing software.
18:44And so we had a Photoshop plugin that allows you to generate images inside Photoshop. We had, before Figma, there was a software called Sketch. So we had a bunch of plugins in Sketch. Then we'll have a plugin in Unity that allows you to create renders. A bunch of different explorations, I would say, how to use AI within creative workflows. And when the Transformer paper came out and generative AI started becoming a thing, was that super obvious to you guys and you started switching away from GANs into Transformer-type models? What was the path to that? So Transformers, for the most part, early on were just used for language.
19:24I think we're using other approaches for pixel and video and diffusions were kind of, I would say, a big transition for what people were using at the time where it was mostly gone and now people are using combinations of transformers and diffusion systems. I think it was a validation of sorts. It's like we're into something and it took us a while to prove we're right in a way. I think it also brought a lot more attention to the field. A lot of companies started to appear. There was way more competition than before, but I think for us it was just another reminder, like try to keep, remain focused and remain obsessed.
20:00What you know is true. There was a lot of noise early on in 2022. There was too many things going on. And I think at some point it was easy to get like busy, you know, with stuff going on and companies popping up and everyone offering everything. And I think we're like, yeah, just like keep doing the thing we know we're good at and everything else will like follow. And so, yeah, I think it was, and still today, it feels like a very competitive environment, which is in a way great. When did it start to feel like you truly had something, you know, some early product market fit in your journey? I think probably at the time we released Gen 2, which is our like second video model.
20:42I think before that we had a bunch of image models and things that I think were working pretty well. But I think there's always this tension of like, where do you want to spend your time? Like optimizing that previous generation of models and trying to push the frontier. And I think for us, it was like pushing the frontier sounds way more interesting. And once the models, the video models started to get really good, and I think it was probably Gen 2 times, that was 2023, which in AI lands feels like 20 years ago. That's, I think, where more people start just understanding how useful these models can become.
21:13And of course, like we released Gen 3 Alpha a couple months after that. And that's again, another spike in usage, another spike in like use cases. and most recently like Gen 4 which is the latest model also feels like I think every release of a model comes with a bunch of new exciting use cases and new people using the models and then new learnings of what you can do with it so I think on every model release there's like product market fit in a way but it's interesting to make sure for us at least that we don't want to stay there for too long we need to like push it again and again and again How have you guys thought about yourselves as you were evolving from 2018 to today as a research lab versus a product company and doing both?
22:05Are you primarily one or the other? Are you both? And then how does that manifest? I think we started mostly as a product company. I think the first two years of run, we were mostly just building a product. And then kind of we realizing that what was missing from that product experience that we thought we should give users and ourselves was like core research. And we just didn't see anyone doing that kind of research. And so we started building ourselves. And building a research org from the ground up is way harder than I thought it would be. But I think that happens to be the case we're pretty much building a company.
22:39and then we've I think by now we have I mean I'm biased but I think it's the best research team in video in world models in image where it's a small team a very small team that has kind of pushed the frontier for a couple of years now and we're competing with I would say the best research labs with much more funding than we are and we still manage to like do very really interesting research and so we've now managed to I would say balance both the product ethos of the company still there But now we're a very strong research team. But for me, those two things have to go hand by hand. If you're just a product team, I think you're going to get leapfrogged by research.
23:16If you're just a research team, then it doesn't have any real impact in the world. So being able to do both has been kind of a superpower of ours. And how do you make researchers and product people work together? Because researchers presumably are going to be drawn to the frontier and the theoretical, and the product people are going to be drawn towards this is what our customers want to see tomorrow. How do you balance it? That's sometimes the case, but I would say for the best people and maybe something we do when we hire is try to find people who can understand a little bit of both worlds. I think there's definitely a simplification of thinking of researchers just as like academics who want to publish.
23:56I think many of them are seeing their impact in the real world and want to build products. And there's a lot of great engineers who understand research and want to make sure they can bring that research to their product development. I think it's just speaking the right people. There's definitely a lot of both people who are just obsessed with one or the other, but I would say these days, the intersection of folks who can speak both languages is a bit more common. So you just start to find those people. So double-clicking on product, I'd love to spend more time on those two models, on the left and Gen 4, which were the releases of 2025.
24:32I think I left was released just a couple of weeks ago. Why two models? Maybe help us understand, compare and contrast what they both do. So in a way, they're the same model, slightly different. What I mean by that is our thesis has always been that models as they scale will start generalizing. And I mean by that is there's many tasks in video that you rely on very specific specialized models to do. so you were speaking about you were asking me about like what kind of things filmmakers use run before there's all these very specific workflows and things you're using other tools for the way you could solve for that in the island before a couple years ago was like you build a specialized model for green screen or a specialized model for in painting or a specialized model for avatars and you have this specific specialized models that do specific things our thesis has always been that like you don't that's not going to matter like it's just none of those things will matter the moment you have a model that can learn how to do all of those things at once and so a laugh is our first like public approach towards solving that the model has this thing that we call in context and so what it basically means is that you can solve and do things with the model that the model wasn't specifically trained for and that that gives you so many superpowers because then you're if you want to do something you just have to show the model what is the thing you want to do and the model will learn how to do it very similar to how you approach perhaps similar problems in language these days where i don't know if you remember this but before like very large language models that we have today you used to have very specialized models for like translations there was a model in hanging phase that translated from korean to english or there was a coding agent model that used very specific things none of those models really matter right now because you have a much better model that has learned how to generalize around all of those tasks and you can just system prompt the model to behave really good in one particular thing, for example.
26:30I think that is for us kind of the future, I would say, of video and just world media building is you don't have specialized models. You have one model, but then if you provide the right references or the right system prompts, the model can tackle those things. And so Aleph and Gen4 are steps and stepping stones towards realizing that. And they're in some way the same model, just like with slight changes on top. So Gen 5 or Gen 6 will be just one models? I think we're going to continue pushing the frontier of having these models that can generalize and do a bunch of different things. We do other sometimes things where we specialize our models for particular very narrow tasks like character performance.
27:14So we have a thing called Act 2, which allows you to, by the way, for podcasts is great because you can change people and faces and characters as you wish. and in that case we sometimes need too much like the voice of the person like giving the speech and the expressions do matter a lot and so you can take the base model and kind of like think about it as like you take the base model and you do a system prompt very specifically or a fine tune very specifically for that task but still the underlying model is basically the same and that generalization aspect to the models that also means that presumably the same model works for all use cases.
27:53So we talked about Hollywood, we talked about architects, we talked about advertisers. Do you customize at all? That's the most interesting thing I would say with models that can generalize is that you don't have to customize the product experience to tackle those specific use cases. And I think that speaks a lot more about the overall trajectory and I would say direction of where software is going. I think software for me over the last two decades has been about picking verticals. You know, you pick a specific function of something you want to do and you just go very deep into it. And so you had Adobe building very specific software for creatives, but you take some of that same like engineering work and you build Autodesk and you've had very specific workflows for architects.
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28:35And those two things are different. And then you have gaming world and software and it's very specialized and specific. But then if you look at something like Alaf or Runway, we don't have very specific software to address all of those needs. It's the same UI, the same product experience, yet somehow we have customers in all those verticals. And I think the underlying, I would say, pattern there is it used to be the case that you pick verticals. I think now you pick principles. And the principles allow you to scale much better than any other previous generation of software. Our principles are the ones I was kind of telling you before, which is generalizable models.
29:13Scale really matters. Data, like quality, really matters. If you pick those principles well enough, you will scale in ways that you couldn't scale before with traditional software. And so, yeah, we don't customize or change the underlying product in any way. We do a lot of the work in the model, and that will continue to be the case. Fascinating. That was at the model level. At the product level, is that true as well? Or do you need to do industry-specific integrations in that architecture or software? No, you don't. And that's the interesting thing. You ask the user to do it on inference time.
29:47Similar to, like, I would say language models these days, where if you want to, if you, like, if you think about it, I don't know if you use, I'm sure you use any, like, a chatbot these days or language models to work. You're using the underlying same model interface that someone in, like, Chile is using to, like, do their high school homework and someone in, like, MIT is using for, like, Biola research. And it's the same underlying interface. I think for video and image models, it's basically the same. You don't have to have specialized UIs. You have to have the user just give you the right instructions.
30:20And if the right instructions are set correctly, then if there's a need for a UI or a slider or something else, I also believe that the models and the products should be able to just generate that as well, which is a completely different paradigm from how we built software before. And I think a much more interesting one for me. Yeah, and speaking of instructions, One of the things that blew my mind as I was, again, playing around with the models is the input modalities. Yes. So for chatbots, we use two prompts. But with Aleph in particular, you can do all sorts of different things in terms of like how you query the model.
30:54Maybe talk about some of those. You can now generate video or content or media without having to like write a single prompt, which for many, I think, is just totally new. and it goes back to kind of what we were saying before, people might need to rethink their mental models around media and videos and images. Aleph works in a way that allows you to input a video and then either select or choose or make a modification with it. And so you get the same video. So you can generate entire new sequence, but in this case, it could be the same video, just with something added or modified in the way that you want.
31:31And in some cases, just a word. In some cases, you can just annotate on top, which happens to be the way most professionals work. You take a video or a frame and you annotate on top what you want and you use that to prompt. So you have a video, your annotations that happens to be images. There's no like language prompts. There's only words perhaps in the reference or in the annotation and you feed that to the model. The model looks at both things at the same time, understands that this is an annotation of this thing and then like makes the changes. Yeah, it could be literally an arrow, right? It could be like a drawing was an arrow.
32:05Literally, like it doesn't have to be words, just like, which again, if you look at how professionals are working these days, it's pretty much like that. You take something like a video and then you either slice it or use something like Frame.io and you start annotating on top and then the annotations you can send to someone, they review it, they interpret them and they make the changes. That process can now be automated having a model that does it for you. That for me is a completely new way of just using the models that just wasn't possible like a couple of even weeks ago. How do you think about quality and testing quality?
32:41Because, you know, a video is ultimately a bit of a subjective kind of product. So yes or no, it follows instructions. But is this a good-looking video? Is it a bad-looking video? So how do you think about building rigor around evaluation and the testing and feedback? It depends what you're solving for. I think we have a high bar for like aesthetics and quality and cinematic outputs and professional outputs. I want to make sure like we can keep raising the bar towards. Part of it is you have to have the right feedback loops for training. And so we have a studio team, a creative team in-house working right next to a research team.
33:26That's how you improve the models on a qualitative kind of like aspect. I think if you aim very high for quality, it would unlock a lot of other use cases that are just downstream of that. I don't think there's one single answer. It's more of just have to be, you have to prioritize for that. How do you manage expectations in this world? And I'm seeing this as a general comment, not about you guys specifically, but it feels like AI video is perhaps the most obvious case of like amazing Twitter demos or like social media demos where it looks fantastic. And then, you know, you get on the tool, a tool, not necessarily you guys.
34:11And then, you know, it's work, right? It's a struggle. Like all creative processes involve struggle. How do you manage this so that people are not disappointed and jump to the conclusion that, oh, AI just doesn't work. It's all Twitter videos or Twitter X demos. I actually wrote a long post about this very recently. But there are a couple of things. The first one is setting the right expectations for people. I think, as you were saying before, most of people's experience with AI these days, if you look at a macro level, has been with chatbots. And the way you interact with a chatbot is you give the system one prompt, one answer and you expect one answer back and it needs to be true and it needs to be good and it needs to be like one single thing that i do right um i think if you're completely new to like creative ai or using ai to make images or videos you might come with a very similar expectation being like i have this incredibly creative thing in my head which is a complex thing that i only can visualize internally i'm going to go into this software i'm going to type the words that i think describe what I'm seeing.
35:16And then once it's out, I'm going to be extremely frustrated because it doesn't match what I had in my head. And the conclusion is therefore that it doesn't work. And so for me, it's like you're watching a Christopher Nolan movie and you realize he used a camera for that. You go and buy the same camera and you press the button to record and you watch the output and you're like, those two things don't compare. This camera does not work. Right. It's not me. It's the camera. The camera doesn't work. I make that kind of comparison because I think ultimately this is a creative medium that requires you to experiment, spend time understanding how it works.
35:50If the assumption is you're going to come and make a film by pressing a button of a camera, you're not going to have, you're not going to understand how cameras work. If your expectation is to come to any AI creative software and type one word and get exactly what you want, you're not fully understanding the extent of how they work. And so part of it is just helping people manage their expectations and understand how things work in this new world, that some of the things that you're expecting might not actually happen the way you will expect them. It just works differently. And it's just a learning curve.
36:21For the first couple of times, it will take you time to adjust until you understand how it works and you start realizing the potential of it and you start understanding how you can bring it in. And I think it's, yeah, probably managing expectations happens to be the most important thing for people who are totally new to the field. What would you say is the current state of the art in video AI runway, but like across the industry, precisely in terms of managing expectation? What is currently possible? What is not yet possible? What's truly working and what's not yet working? So I think there's a lot of things that have worked, but I think this field is still very nascent.
37:03and there's so many things you can solve for. I think image gen is not fully solved, but it's made a lot of progress. I think most of the tasks that people thought would not take many years to solve are instruction-based prompting or instruction-based generations. All of the things that are very specific and detailed, I think models are getting really good at. In the video side, I would say long consistency of scenes or being able to cut and have consistent characters within the same generations, though things are also making a lot of progress. I think real-time is getting closer and closer. And I think it will be perhaps the sole focus of many companies over the next couple of months.
37:43How do you make sure inference happens on like real-time basis? Like you can do with language models these days. You can have a conversation with an assistant. You're going to get to that for video very soon as well. I think there are many things that haven't yet been solved. And there are things that are getting better, like consistency role is getting extremely good. But I think my belief has always been that we solve, as a field, we solve rendering first. We're able to show and create incredibly consistent videos and images. We haven't yet solved control, which is how you make sure the models create the thing that you want to create.
38:19And control has only started to happen over the last couple of years, months even. So there's a lot more focus in control. For a lot of us people following video AI over the last couple of years, and then the broad public, not that long ago, we were in the world of the Will Smith spaghetti and then the six fingers and all the things that were sort of easy to poke fun at. But what's happened in the last year and a half that, you know, all of a sudden we seem to have like this completely mind-blowing results? Is there any kind of like fundamental breakthrough that happened? Any work that you guys did that unlocked this level of quality?
39:06I think it was just time. I think people know if you believe something to be true and you're convinced of it, it's just like a matter of time until like it worked. I think for a long time all of the sculptural moments of like the six fingers and like Will Smith eating spaghetti I think for me those are like focusing on a specific moment in time and trying to extrapolate from that towards the future considering that nothing else will change and I think we have we had just a different perspective being like yeah those things are imperfect but like you're not extrapolating well based on what happened before that and before that and before that, I don't think there was one particular thing.
39:42It was more of, I think many in the field have believed some things are going to be true, some things will scale really well. And building the infrastructure to get there is to have the thing that takes you the longest. Like training a model is not trivial. It takes time. It takes time to do the right captioning, the right annotation, the right infrastructure around it, the right testing. But those things are coming. I mean, they will be solved over time. Yeah. Yeah. Let's talk about that last point in detail, if you will. So let's take Gen 4 and Aleph. From starting with an architecture and algorithm standpoint, are they the same thing directionally as Gen 3?
40:23Are they more of the same thing? Are they different? There's a lot of things that we learn. At every model that you build, you learn something around what works and what doesn't. And I think a model is not just like one single idea. It's a combination of different ideas from how you caption, how you do training, how you task, how you benchmark, how you do different parts of a model. Like if you swap specific architectures on the encoder or the decoder, there's many parts of a model building that for me is more like an art than a science that you're going to learn just by shipping one model, then shipping another model, shipping another model.
40:57Gen 4 has a lot of the things that we've learned over the last three generations of models. And the next generation of models are going to be releasing. They're also going to have a lot of the learnings and the things that work in Aleph and in Gen 4. And I think that should continue to be the case where it's less about one single algorithmic innovation that's going to change the entire field and more about how do you make sure that those pieces are set correctly. Because I think ultimately it's a complex puzzle that has many different parts and you just need to know which ones are working and which ones are not.
41:29How long does it take to train a new model in the hardware world? Yes, pre-training. A couple of months, yeah. I mean, it depends on the standards that you have and how big the model is. And yeah, there's a lot to it. The current ones, LF and Gen 4. It takes a couple months. I mean, so the first model that we ever released that I think was Gen 1 video-wise, it was the first, I think, first model that was ever out publicly and commercially was around 2023. I know that because it was in the front page of the New York Times. It was a big deal at the time. So 2023 was Gen 1. And now we're in Gen 4, Gen 5 almost.
42:07that's been like, what, two and a half years or so, a bit less than two years or two and a half years. And so at the beginning, it was like every 12 months. Then I think every eight months. Then by now, I think things are getting to a point where you can release new pre-trained baseline models every couple of months. I think partially, again, it has to do with the infrastructure. With the amount of work that you, it's hard to see, you know, because like when people judge a model, they just judge the output. and I think it's a fair assumption that like you're judging what you see but it's very hard to understand what went into the model itself and how good that infrastructure knowledge of the organization can be used to ship another model and another model and another model, you know?
42:50And I think that for me is the most valuable part of Runway. It's not a model that we put out because models will like completely like change every now and then. It's the organizational knowledge and the infrastructure that it takes to ship a model like that. And if you're good at that, you're going to start shipping them much faster than before, which happens to be the case for us. And to the extent that you can talk about your infrastructure, any kind of detail about how that works, how do you handle all the compute that is needed to train those models? Are you an AWS shop? What's the stack?
43:27Anything that you can give us a glimpse about on the infra? We started building pretty much, I would say, almost everything from scratch. And so we've spent a lot of time building really good just in research workflows and toolings for researchers. And those are the things that are hard to measure and see because there is no immediate output or no immediate value yet if you're building and spending time on those. But I think if you make the right bets on the way you manage your data, the way you manage your cluster, the way you do deployments, the way you do research and training jobs and all of that infrastructure and knowledge we build internally.
44:06In some cases, there's like, I'm pretty sure if we take some of those internal tools and we make them products, there'll be successful products on their own, you know? But now we have like, a lot of it has to do with knowing exactly why are you building those kind of things. And in some cases now we've managed to like buy some stuff, like we don't have to build everything from scratch. There's enough knowledge in in building those from scratch and knowing why those things work and why others don't work. I think what we can share the most is a lot of what we build is very much custom built. And I think that's an edge if you can afford to do it.
44:42And I think we've managed to afford to do it because we just started. What about the data side? So in AI video, there's this well-publicized debate around in particular using YouTube videos and there's class action lawsuits and all the things. where do you all stand on that and what data do you use to train the current version of the models yeah so we don't disclose what data we use but we've done some like announcements on partnerships around data we have one with Lionsgate we announced another one with GetImages and so we use we have our own internal teams that are collecting data I think quantity matters a lot but also quality so making sure you can like curate the right data garbage in garbage out So if you just put a lot of garbage into the model, you're going to get a lot of bad stuff into it.
45:30But I think quality then goes back to the question you asked me before. It's like, what's good? Like in art or in video or in filmmaking or in just any artistic endeavor, there's no such thing as a right or wrong answer. There is in a chatbot or in a search engine. And so Aloha, we just train the right eye to select and curate the data itself. And so data for us, more than quantity, is a lot of the quality component to it. What about synthetic data? Is that a thing in AI video? It is. I think it's becoming more of a thing, I would say. It still has its challenges, mostly to generate diversity of data, but definitely something we're exploring.
46:15And so on the technology front, you are a closed source. this, you know, obviously this whole back and forth and the theme of open source has been one of the key themes of 2025. Do you, can you imagine that at some point you'll open source some stuff or where do you stand on this question? I do feel that depending on what your goal is, you might just choose whatever is the best outcome for your like mission. And I think for us, it's like we know there's a lot to be built. There's a lot of product momentum that research and product have to work really closely. I don't think open source necessarily gives you that level of control.
46:55It has other benefits. It has other things that I think are extremely valuable. And I think there's a lot yet to be built. And we've open searched a lot of stuff before. But I think for where we're at right now, we'll probably continue to build models just internally. We talked about how one direction the technology was evolving into was one model that could do them all. If you suspend disbelief or be very optimistic for the next few years, from a pure technology standpoint, what do you think happens? In particular, there's this question of 3D worlds where you can explore entire universes. So, like you're in a completely video-generated, AI video-generated environment that keeps being built as you progress.
47:42Is that near term? It's here. Yeah, I think, I mean, we have it. It's more about like deploying it and like the economics around it. I think you're going to start seeing, yeah, real-time becoming more of an interesting use case than things that you can see. And that's what you meant by real-time, just to double-click on what you said earlier. So real-time means it's not just like a customer service chatbot kind of thing. It could be like a whole universe. Correct. you start with let's say a reference image or reference video or a prompt and you're free to basically navigate this world openly as you wish and I think what I mean this is a new medium is the moment you're able to do that and if you've ever tried it and there are a few people that will have tried it it doesn't feel like anything you've experimented before because like if you think about linear media films and videos and ads it's the same video everyone watches and it's the same experience It's the same sequence of actions happening over and over again.
48:47So that's why it's linear media. There's no linear media like games. And in the nonlinear world, you still have instructions being built. There's worlds and parameters around how things are supposed to happen. And so the rules of the system already baked in, and you're kind of exploring something that someone already created. Now, this is different because you're starting from something, let's say an image or a video or an initial starting point. And then if you extrapolate where things are going to go, you might be able to just navigate and move around that world freely. And there's no rules to the world, but the rules that you want to have in the world.
49:27And that in itself, for me, it's not a film, first of all. It might have some of the qualities of a film because you might choose the story and you want to follow the story. But it's also not a game entirely because it doesn't follow the rules and instructions that we know of games. So what is it? I don't know I know it's just different it just feels and tastes and smells different and I think real time is probably one of the things that will unlock many other new use cases that were just never manageable for people before Are you a believer in the same vein in this idea of hyper personalization of content as in the movie format so maybe not as crazy as what you just described but you know I like that tweeted a while ago this idea of that you could have a Netflix series that would be just completely based on I want this actor doing this thing in this scenario and I got a lot of flack for it like people were not happy for whatever reason.
50:29Is that something that you think is possible? Is that something that you hear people in the creative industry talk about? Yeah. Or is it all made up? No, no, I think a lot of people have come to some sort of the same conclusion of like, oh, you can personalize your films or shows. I don't think that's necessarily wrong, although I do think that that's a way of looking at this new medium with the lens of what we know. So it might not be the case that that's something people want to experience. And that doesn't mean that films are going to go away and you're not going to see shows anymore. It just might happen in the case that it's a different experience altogether.
51:07and there might still be Netflix shows in the ways that we know them, but then there's an experience that you're having on the side that could be inspired loosely by the story that you watch on a linear way. You can have both. Like, it doesn't have to necessarily replace. And I think when people get angry or perhaps mad is that they might be interpreting this new way as replacing the entire new thing, you know? And I'm like, no, it's not going to replace it. You're still going to have, like, Guillermo del Toro building, like, the film for you, but you can have another thing on the side. And another thing might be just if you're an experience.
51:40It might not be for everyone. That's fine. Not everyone in the world plays games and it's totally fine. Like, but you can still have both and you're going to get to the point where you can customize experiences in the way that you're like describing. I'm just not sure that they're going to follow the same rules and patterns of films where you have actors and scenes and sequences, you know? I think that, yeah, I don't think that's probably going to happen. All right. So we talked about the product. We talked about the core technology and models. Let's talk about the business side a little bit. Who's your prime customers?
52:11We touch upon a little bit, like this Hollywood, this advertising, this music videos in terms of use case. But are you at this stage a bottoms up kind of company? Like you have this product, which is open to everyone. Or are you targeting the big enterprise deals with Lionsgate and Disney's as you already have? So from a business side, I think our goal is to help people tell stories. Like, ultimately, I think storytelling can take different forms and shapes. Today happens to be the case, again, the most obvious one is, like, the people who make storytelling for a living. All the studios, all the agencies, all the media companies, the brands.
52:50Most of, if not all, of our adoption is just very organic. Like, we've just people coming to a platform. Again, it started with a very small set of subcultures and sub-users in very small niche companies, and they're starting to grow from there. The brand is now, I would say, the product is known by many, mostly because you've seen it somewhere else. Because someone showed it to you or you saw a video of it and like you experienced it and you share your, you start using it. We have hundreds of people and thousands of people just making like videos for their own, for their own like enjoyment. It's an audience of one.
53:20You're just making it for yourself. There's value there. I think there's a lot of like value making experiences that are like just for you. But then you probably work personally somewhere else and you bring runway to your company. I think having your users and your customers be your like sales force in a way, it's great and it's hard, but it's great because it helps you just go into many different places that otherwise would be very hard to get into. That's how we've got into all the studios. It's not us like trying to like deeply sell to them. It's like they reach out being like, hey, we have this use case or like we want to use it because our team was using it.
54:01and we started to see that in other industries like architects same thing like there's some overlap between BFX and architect software and for some it became interesting to experiment with runway and it became a thing and then you started kind of growing like that. So you're mostly inbound or exclusively? 99 % interesting. Will you go outbound at some point or is it just not the thing about the company? I think we will. I think we realize the business is in a position where we need to make sure that we can show this to everyone, even if you haven't seen it before. Like I was traveling, I came through customs a couple of days ago and the officer knew about runway and like, you know, in the visa it said runway.
54:42It's like, oh, runway. Like, that's great. That's amazing. But I have like all that stories where like people now have heard about it. And I think we need to just either, but make sure also that like there's many other people in the world, like 90, I would say most of the world out there just hasn't heard about this. and you're going to get there by just doing everything you need to do. From a pricing standpoint, so you have different tiers where like for 20 bucks you get a certain number of credits and then you have like an enterprise tier. Like how do you charge people? The best option is just unlimited.
55:15Get unlimited. Unlimited is a plan that I would say to generate as much as you want. It's like what,$79? And you can generate everything you want. You can pay for credits if you want faster generations. And for enterprises, it depends. Like we have people who are using the API to generate thousands of videos. And in that case, we charge you per request. And so it's a very flexible, since we do everything, we do model training with deployment, inference, distillation, optimization, product, then we can manage to change everything from that stack that we want to change. I think that one of the things that I would say in AI these days is tough if you're just on a particular like hopper layer is the margins because you don't control the rest.
55:56You're just basically giving the value to whoever built the model. I think there are very few companies out there that can do this full stack approach. You train the models, you deploy them, you do the inference. And so for us, in some cases, we might charge you differently depending on which part of a stack you want. If you just want the API, we can charge you this. If you want the product, we can charge you this. But I think overall, my general sense is that prices will continue to go down, mostly because compute will continue to go down. Yeah, fascinating. Anticipated my question. So you're not in the reported cursor and formerly Windsurf world where because of their reliance on underlying models, they're reported to be operating at negative gross margins.
56:39But here you control the stack, so you're reasonably insulated. Although there's still a cost of inference. Of course, there's cost. But I would say, yeah, I would say most of the AI lab research margins these days for companies to build are between like what's 40 to 70 percent yeah i think eventually you'll get to like best in sas margins like as 80 90 percent over time um and i think most of those companies were in those ranges are the ones who build the models themselves like if you if there's a dollar that comes in and you can get that dollar out for the entire stack then like you're benefiting from it if you're switching that dollar to start giving it to someone else then in some cases you you might not be owners of your destiny in a way.
57:23And I think we're pretty much still owners of our destiny. Speaking of big labs, one other thing that seems to have accelerated in the last year or so is the level of competitive pressure on this part of the market. So in particular, Google and VO3 made quite a splash. And then there are reports or rumors that there's going to be a Sora 2 coming out soon. Innovatively, that will happen. So what's your take on this? Is that validating? Is that scary? How do you think about it? It's great. Again, when you create a market and industry, like if it's interesting enough, you're going to have the best companies try to follow you.
58:06And if you're scared because of that, then I don't think you have the guts to continue leading it. When we started, no one cared. We showed a way, we showed a path. now others have followed and I think that's a great validation it's a great sign I still believe the companies are going to win here the companies are obsessed around the problem at hand are obsessed around not only catching up but like leading the way and I think that just requires a completely cultural like set of approaches on how you build both product and research speed is the uttermost importance these days it needs to be very fast you need to learn a lot and I think for us it will continue to be the case We've seen competition come and go for the last six years.
58:50Every new year, there's a new company people ask me about, and it's like, what do you think about this? But Chris, they have so many PhDs in their team, and they're so well-funded. Great. It's going to move the field forward if they succeed. If not, we'll continue building what we built. And I think that happens to be the case year over year. I'm confident that we'll continue to lead the way. All right, so maybe to close, zooming out, I'm curious about the future for Runway for you, but also for the industry and for users. What should one do today if you're interested in that world of creative film and storytelling?
59:35Do you go all in on AI and what does that mean? or do you still go to film school or are there professions that you should not pick because eventually that's going to be disrupted by, completely disrupted by AI? What's your recommendation when people ask you those questions? Be very open-minded. I think if you have a very consistent and particular way of thinking about how the world has worked, I think that's probably not going to adjust well to change. And I think the fusion of technology has changed. Technology has changed the world, of course, all the time. Like I argue that art is the history of technology and that will continue to be the case over time.
1:00:16But it used to be the case that we used to adjust. We had more time to adjust. We have sometimes like years and decades to adjust. And so the media world had years and decades to adjust to streaming and digital content. I don't think people have now realized that we don't have time to adjust. like if you're there are many companies that I've spoken with over the last couple of years that thought that all that what's happening today was going to supposed to happen in the next 10 years and if your whole strategy has been waiting and seeing I think you're not going to make it and that happens also like at a personal level if you're just waiting and seeing from the sidelines you're going to miss out and I think there's nothing preventing you from like experimenting, trying new things even if it's not perfect I think models have so much value these days in all sorts of domains.
1:01:06So be very open-minded and willing to question the essence of all of the things that you know are true because I think most of them will change. How have you adapted to that whole evolution at Runway? And with that, I'm going towards any kind of surprises in the history of Runway and advice for founders as you build and scale in this super fast-changing environment. It's funny. Someone asked me that same question a couple weeks ago. And I think the way I thought about it is we train models at Runway. So a model is basically an algorithm that learns about data, learns the patterns in the data, and then creates something based on the data.
1:01:49And then if you're good at training models, you can add more data, change the outputs, and keep doing that all the time. I think of Runway as an organization as a model itself, where there's data in the world, and data might be markets, markets, there are technology like competition, like talent. There's data happening. You fit that data for your organization. That happens to be the people and the knowledge between the people. And then an output comes out of it. And then what you need to do is they take that output, put it back as data that you understand and mix with everything else. And you keep doing that all the time.
1:02:22And I think adjusting the weights of that model is the most important thing like I can do right now, which is how do you make sure that as new data comes in and outputs keep changing, this model keeps growing and learning and becoming better. And I think part of it is sometimes in the AI land you start with random weights. You start with no knowledge, no understanding of what the model does until you start training it. And then suddenly something comes out and you think what works. I like to think of an organization that operates in a very similar way. You're constantly learning all the time. You're a system that keeps on learning.
1:02:55The moment you stop learning is the moment you stop pretty much growing. so perhaps it's a self-recurring like answer but yeah I think companies should operate like as an AI models as well Five years from now what does success look like for Runway View if you have it your way and everything goes according to plan Five years that's like five decades in AI Yeah okay three years, five years, ten years I think we started the company because I was just having too much fun with my co-founders like at school really really i'm 100 % honest here like we we finished school and we just love working together and so we we thought that starting a company might be the easiest way to like keep having fun and learning about this and uh i think i still what i enjoy the most about runways i come to the office now for 100 people and sometimes i sit with the brightest minds in a particular field and i'm learning a lot it's just so fun you know um i think success for me is like, well, we'll keep doing that for many more years.
1:03:56And in the process of doing that, you're going to change the world somehow. You're going to either make the world more creative. You're going to help someone make a story that they couldn't do before. You're going to change how people learn, how people see the world. But most importantly, the organization itself is having fun and enjoying and doing it because they care. I think care, like if you fundamentally don't care about what you're working on, like you're not going to get very far. I think we care maybe too much. And so in the next five to 10 years, I want to keep on working stuff that I care deeply about.
1:04:25And then the consequence of that is that you make great stuff and great products. The moment you stop caring is the moment like nothing really works. Well, that's a wonderful place to leave it. Thank you so much, Chris. This was terrific. We appreciate it. Thank you. Hi, it's Matt Turk again. Thanks for listening to this episode of the Matt Podcast. If you enjoyed it, we'd be very grateful if you would consider subscribing if you haven't already or leaving a positive review or comment on whichever platform you're watching this or listening to this episode from. This really helps us build a podcast and get great guests.
1:04:56Thanks and see you on the next episode.
From the publisher
2025 has been a breakthrough year for AI video. In this episode of the MAD Podcast, Matt Turck sits down with Cristóbal Valenzuela, CEO & Co-Founder of Runway, to explore how AI is reshaping the future of filmmaking, advertising, and storytelling - faster, cheaper, and in ways that were unimaginable even a year ago.
Cris and Matt discuss:
* How AI went from memes and spaghetti clips to IMAX film festivals.
* Why Gen-4 and Aleph are game-changing models for professionals.
* How Hollywood, advertisers, and creators are adopting AI video at scale.
* The future of storytelling: what happens to human taste, craft, and creativity when anyone can conjure movies on demand?
* Runway’s journey from 2018 skeptics to today’s cutting-edge research lab.
If you want to understand the future of filmmaking, media, and creativity in the AI age, this is the episode.
Runway
Website - https://runwayml.com
X/Twitter - https://x.com/runwayml
Cristóbal Valenzuela
LinkedIn - https://www.linkedin.com/in/cvalenzuelab
X/Twitter - https://x.com/c_valenzuelab
FIRSTMARK
Website - https://firstmark.com
X/Twitter - https://twitter.com/FirstMarkCap
Matt Turck (Managing Director)
LinkedIn - https://www.linkedin.com/in/turck/
X/Twitter - https://twitter.com/mattturck
(00:00) Intro – AI Video's Wild Year
(01:48) Runway's AI Film Festival Goes from Chinatown to IMAX
(04:02) Hollywood's Shift: From Ignoring AI to Adopting It at Scale
(06:38) How Runway Saves VFX Artists' Weekends of Work
(07:31) Inside Gen-4 and Aleph: Why These Models Are Game-Changers
(08:21) From Editing Tools to a "New Kind of Camera"
(10:00) Beyond Film: Gaming, Architecture, E-Commerce & Robotics Use Cases
(10:55) Why Advertising Is Adopting AI Video Faster Than Anyone Else
(11:38) How Creatives Adapt When Iteration Becomes Real-Time
(14:12) What Makes Someone Great at AI Video (Hint: No Preconceptions)
(15:28) The Early Days: Building Runway Before Generative AI Was "Real"
(20:27) Finding Early Product-Market Fit
(21:51) Balancing Research and Product Inside Runway
(24:23) Comparing Aleph vs. Gen-4, and the Future of Generalist Models
(30:36) New Input Modalities: Editing with Video + Annotations, Not Just Text
(33:46) Managing Expectations: Twitter Demos vs. Real Creative Work
(47:09) The Future: Real-Time AI Video and Fully Explorable 3D Worlds
(52:02) Runway's Business Model: From Indie Creators to Disney & Lionsgate
(57:26) Competing with the Big Labs (Sora, Google, etc.)
(59:58) Hyper-Personalized Content? Why It May Not Replace Film
(01:01:13) Advice to Founders: Treat Your Company Like a Model — Always Learning
(01:03:06) The Next 5 Years of Runway: Changing Creativity Forever
