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

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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.



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Hero bystander who tackled Bondi gunman praised by Trump, Ackman

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A bystander who rushed and disarmed one of the Bondi Beach attackers has won praise from leaders around the world, including US President Donald Trump and hedge fund billionaire Bill Ackman, who announced a reward program for community heroes.

Extraordinary footage of the civilian’s actions began circulating on social media on Sunday, shortly after two men, later identified as a father and son, started shooting into a crowd gathered to celebrate the first day of Hanukkah. The massacre has left at least 16 people dead in the worst terrorist attack in Australia’s history. 

Read More: Sixteen People Killed in Bondi Beach Hanukkah Terror Attack 

In the mobile-phone video, which has not been verified by Bloomberg News, one of the attackers is standing near a tree and firing. A few meters away, a crouched man emerges from behind a parked car. He grabs the shooter from behind and wrestles the weapon from his hands. Local media named the bystander as Ahmed el Ahmed, a 43-year-old father-of-two from south Sydney. He was shot twice and is being treated in the hospital, according to reports.

He was also soon lauded for his feat. Trump said at the White House that Ahmed had saved many lives and expressed “great respect” for him. In Sydney, New South Wales Premier Chris Minns went further, describing Ahmed’s wrestle with the shooter as “the most unbelievable scene I’ve ever seen.”

“That man is a genuine hero and I’ve got no doubt there are many, many people alive tonight as a result of his bravery,” Minns said at a press conference late Sunday.

Australian Prime Minister Anthony Albanese also praised Ahmed, and other bystanders who helped treat victims in the immediate aftermath of the shooting. 

“People rushing towards danger to show the best of the Australian character,” Albanese told reporters Monday. “That’s who we are, people who stand up for our values.” 

Pershing Square Capital Management’s founder Ackman called Ahmed  “a brave hero” and said his hedge fund firm would establish a reward program for people who had carried out similar acts.

The top donor to a gofundme page set up for the “hero” who tackled the shooter is listed as William Ackman, who gave $99,999. More than $170,000 has been raised so far. 

Salesforce Inc. Founder and Chief Executive Officer Marc Benioff also expressed his gratitude for Ahmed in a post on X.



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A ‘new era’ in the housing market is about to begin as affordability finally improves

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Next year should mark a shift in the housing market after years of largely being frozen in place, according to Mike Simonsen, chief economist at top residential real estate brokerage Compass.

Home sales flatlined amid unaffordable conditions after rising demand collided with tepid supply growth, pushing up home prices. Would-be buyers became so discouraged that demand cooled and remains slow.

Prices are now becoming more favorable for house hunters, a trend that should continue in 2026 and change the narrative in the housing market.

“In the next era, that story flips. So sales are starting to move higher, but prices are capped or maybe down. Incomes are rising faster than prices, and so affordability improves for the first time in a bunch of years,” Simonsen told CNBC on Friday. “It’s not a dramatic improvement, but it’s the start of the new era.” 

His view echoes a recent report from Redfin, which also cited stronger income and weaker homes prices as it predicted a “Great Housing Reset” in 2026.

In addition to potential buyers giving up on finding an affordable home, sellers have been giving up on finding someone willing to buy at the price they want.

As a result, the number of homes that were withdrawn from the market jumped this year. In June, these so-called delistings shot up 47% from a year earlier.

Simonsen said listing withdrawals tend to be owner-occupied homes, meaning they could be latent demand as well as supply. That’s because two transactions would be needed: owners want to buy a new home but must sell their current one.

“In an environment where conditions improve a little bit, we actually estimate that that’s a representation of shadow demand—people that want to move, people that have delayed moves for maybe four years now,” he said, adding that there are about 150,000 such homeowners.

His housing market outlook for a new era of improving affordability doesn’t depend on a steep drop in mortgage rates. In fact, a plunge might spur so much demand that prices would overheat.

Simonsen expects rates to stay in the low-6% range, allowing sales to grow while also keeping home prices in check as more inventory comes on the market.

The price environment is already showing auspicious signs for prospective buyers. More than half of U.S. homes have dropped in value over the last year, but homeowners can still sell with a net gain as values are up a median 67% since their home’s last sale, accordion to data from Zillow.

And a separate report fromZillow found that homebuyers are getting record-high discounts. While the typical individual discount remains $10,000, desperate sellers are increasingly offering multiple reductions as muted demand leaves homes on the market for longer. As a result, the cumulative price cut in October hit $25,000.

“Most homeowners have seen their home values soar over the past several years, which gives them the flexibility for a price cut or two while still walking away with a profit,” Zillow Senior Economist Kara Ng said in a statement last month. “These discounts are bringing more listings in line with buyers’ budgets, and helping fuel the most active fall housing market in three years. Patient buyers are reaping the rewards as the market continues to rebalance.”



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Attacker who killed US troops in Syria was a recent recruit to security forces

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A man who carried out an attack in Syria that killed three U.S. citizens had joined Syria’s internal security forces as a base security guard two months earlier and was recently reassigned amid suspicions that he might be affiliated with the Islamic State group, a Syrian official told The Associated Press Sunday.

The attack Saturday in the Syrian desert near the historic city of Palmyra killed two U.S. service members and one American civilian and wounded three others. It also wounded three members of the Syrian security forces who clashed with the gunman, interior ministry spokesperson Nour al-Din al-Baba said.

Al-Baba said that Syria’s new authorities had faced shortages in security personnel and had to recruit rapidly after the unexpected success of a rebel offensive last year that intended to capture the northern city of Aleppo but ended up overthrowing the government of former President Bashar Assad.

“We were shocked that in 11 days we took all of Syria and that put a huge responsibility in front of us from the security and administration sides,” he said.

The attacker was among 5,000 members who recently joined a new division in the internal security forces formed in the desert region known as the Badiya, one of the places where remnants of the Islamic State extremist group have remained active.

Attacker had raised suspicions

Al-Baba said the internal security forces’ leadership had recently become suspicious that there was an infiltrator leaking information to IS and began evaluating all members in the Badiya area.

The probe raised suspicions last week about the man who later carried out the attack, but officials decided to continue monitoring him for a few days to try to determine if he was an active member of IS and to identify the network he was communicating with if so, al-Baba said. He did not name the attacker.

At the same time, as a “precautionary measure,” he said, the man was reassigned to guard equipment at the base at a location where he would be farther from the leadership and from any patrols by U.S.-led coalition forces.

On Saturday, the man stormed a meeting between U.S. and Syrian security officials who were having lunch together and opened fire after clashing with Syrian guards, al-Baba said. The attacker was shot and killed at the scene.

Al-Baba acknowledged that the incident was “a major security breach” but said that in the year since Assad’s fall “there have been many more successes than failures” by security forces.

In the wake of the shooting, he said, the Syrian army and internal security forces “launched wide-ranging sweeps of the Badiya region” and broke up a number of alleged IS cells. The interior ministry said in a statement later that five suspects were arrested in the city of Palmyra.

A delicate partnership

The incident comes at a delicate time as the U.S. military is expanding its cooperation with Syrian security forces.

The U.S. has had forces on the ground in Syria for over a decade, with a stated mission of fighting IS, with about 900 troops present there today.

Before Assad’s ouster, Washington had no diplomatic relations with Damascus and the U.S. military did not work directly with the Syrian army. Its main partner at the time was the Kurdish-led Syrian Democratic Forces in the country’s northeast.

That has changed over the past year. Ties have warmed between the administrations of U.S. President Donald Trump and Syrian interim President Ahmad al-Sharaa, the former leader of an Islamist insurgent group Hayat Tahrir al-Sham that used to be listed by Washington as a terrorist organization.

In November, al-Sharaa became the first Syrian president to visit Washington since the country’s independence in 1946. During his visit, Syria announced its entry into the global coalition against the Islamic State, joining 89 other countries that have committed to combating the group.

U.S. officials have vowed retaliation against IS for the attack but have not publicly commented on the fact that the shooter was a member of the Syrian security forces.

Critics of the new Syrian authorities have pointed to Saturday’s attack as evidence that the security forces are deeply infiltrated by IS and are an unreliable partner.

Mouaz Moustafa, executive director of the Syrian Emergency Task Force, an advocacy group that seeks to build closer relations between Washington and Damascus, said that is unfair.

Despite both having Islamist roots, HTS and IS were enemies and often clashed over the past decade.

Among former members of HTS and allied groups, Moustafa, said, “It’s a fact that even those who carry the most fundamentalist of beliefs, the most conservative within the fighters, have a vehement hatred of ISIS.”

“The coalition between the United States and Syria is the most important partnership in the global fight against ISIS because only Syria has the expertise and experience to deal with this,” he said.

Later Sunday, Syria’s state-run news agency SANA reported that four members of the internal security forces were killed and a fifth was wounded after gunmen opened fire on them in the city of Maarat al-Numan in Idlib province.

It was not immediately clear who the gunmen were or whether the attack was linked to the Saturday’s shooting.



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