Connect with us

Business

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

Published

on



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.



Source link

Continue Reading

Business

Brazil’s President Lula calls Trump’s 50% tariff threat over Bolsonaro’s trial ‘unacceptable blackmail’

Published

on



Brazilian President Luiz Inacio Lula da Silva on Thursday slammed Donald Trump’s threat to impose 50 percent tariffs on Latin America’s largest economy as “unacceptable blackmail.”

Lula’s comments during a nationally televised speech were the latest in series of tense exchanges between the leaders, with the US president launching especially blistering attacks on the government in Brasilia.

Trump announced on July 9 his intention to slap steep tariffs on Brazil as punishment for what he termed a “witch hunt” against his far-right ally, former president Jair Bolsonaro.

The United States has also said it is investigating Brazil’s “unfair trading practices,” and Brasilia said it was committed to negotiations.

The tariffs on all products from Brazil would kick in on August 1 if Brasilia and Washington do not reach an agreement.

In his speech, leftist leader Lula slammed Brazilian politicians who back Trump’s policies as “traitors to the homeland.”

He said he would continue “betting on good commercial and diplomatic relations” but warned: “Brazil has only one owner: the Brazilian people.”

Bolsonaro is facing trial over accusations he plotted a coup after his narrow 2022 election loss to Lula. If found guilty, he could face up to 40 years in prison.

Earlier on Thursday, Trump posted a letter addressed to Bolsonaro on his Truth Social platform in which he insisted Lula’s government “changes course” and “stop attacking” his political ally.

“I have seen the terrible treatment you are receiving at the hands of an unjust system turned against you,” Trump wrote to Bolsonaro.

“I have strongly voiced my disapproval both publicly and through our Tariff policy,” he added.

Trump also said he was “concerned about the attacks on free speech” in Brazil and in the United States.

He appeared to be alluding to the suspension in Brazil of Rumble, a video-sharing platform popular among conservative groups, over its refusal to block a user accused of spreading disinformation.

‘Interference’

Trump’s intervention in the Bolsonaro case has improved Lula’s popularity, who has appealed for national unity in the face of US “interference.”

Unlike the tariffs Trump is slapping on economies around the world, including top US allies, the measures against Brazil were announced in openly political terms.

Brazil had not been among dozens of trade partners previously threatened with duties above a 10 percent baseline.

The United States runs a goods trade surplus with Brazil, which said it had repeatedly requested that Washington point out areas of particular concern.

Brazil expressed “indignation” at the stiff proposed tariff in a letter addressed to US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer.



Source link

Continue Reading

Business

Malaysia’s AI darling NationGate sees shares tumble after it got raided in a scrap metal smuggling probe

Published

on



Shares of NationGate Holdings, Nvidia’s only manufacturing partner in Southeast Asia, took a beating this week after the company disclosed a raid into one of its subsidiaries by Malaysian authorities.

On Tuesday, Nationgate admitted that the Malaysian Anti-Corruption Commission (MACC) raided the premises of NationGate Solution, a wholly-owned subsidiary, as part of an ongoing investigation into scrap metal smuggling. 

Nationgate’s shares fell 14% on Tuesday to reach 1.45 Malaysian ringgit ($0.34). Shares pared back losses over the rest of the week, but are still down over 10% from Tuesday. 

On Thursday, NationGate stated that the raids did not involve any specific board members or senior management, and that the company didn’t expect a significant hit to its finances or operations. 

The company did not immediately respond to Fortune’s request for comment.

Malaysia’s state news agency Bernama reported on Tuesday that the MACC launched a crackdown on scrap metal smuggling syndicates operating in five states that have resulted in an estimated tax revenue loss of 950 million Malaysian ringgit ($223.9 million). The report added that preliminary investigations revealed these syndicates exported scrap metal to India, China and other countries but reported them as machinery or other metals not subject to the 15% export tax imposed by the government.

NationGate, ranked No. 243 on the Southeast Asia 500, was the fastest-growing company on Fortune’s ranking of the region’s largest companies by revneue. 2024 sales surged 720% to reach 5.3 billion Malaysian ringgit ($1.6 billion), largely thanks to surging growth in its data computing segment.

NationGate is the only company in Southeast Asia that assembles Nvidia’s highly sought-after graphic processing units (GPUs) into AI servers. Nvidia’s GPUs are the most used in high-performance AI applications.

But the AI boom and the link to Nvidia are also a risk for NationGate. In early March, Malaysia and neighboring Singapore faced U.S. allegations of being channels for controlled chips to make their way to China. U.S. officials were reportedly interested in whether DeepSeek, the scrappy Chinese AI startup, got its hands on Nvidia processors it wasn’t supposed to have.

Singapore’s Law and Home Affairs Minister K Shanmugam said in March that servers containing chips subject to U.S. export controls appeared to have been sent to Malaysia. Malaysia’s Trade Minister Tengku Zafrul Abdul Aziz then said officials were investigating and vowed to take necessary action.

Separately, Singapore has also charged three men with fraud for allegedly misrepresenting the end-user of computer servers that may contain Nvidia chips. 

On Monday, Malaysia announced that all exports of high-performance U.S. AI chips will now require permits for exports, and that individuals and companies must notify the government at least 30 days prior to shipping such hardware.

NationGate has distanced itself from the subject and has clarified that it’s not involved in any investigations. Yet investors are still spooked. NationGate’s shares are down over 40% year-to-date.  



Source link

Continue Reading

Business

Penny Pennington of Edward Jones: ‘We’re a health and wellbeing company’

Published

on



Good morning. The U.S. economy has been surprisingly resilient while the tariff wars rage even though prices may go up as inventories dwindle, consumers are becoming more value conscious, and investors are by turns sanguine and skittish. (Witness their reaction to the specter of President Trump potentially firing U.S. Federal Reserve Chair Jerome Powell, as my colleague Jim Edwards noted in this piece.) 

I had a chance to speak with several business leaders at a roundtable convened by Edward Jones Managing Partner Penny Pennington recently at the Aspen Ideas Festival. Her concern was, “how do we help future generations build wealth in this uncertain economy?” With challenges like high home prices and an uncertain job market, she takes a holistic view of the customer. “We’re a health and wellbeing company.”

The theme of investing took many forms. Bev Anderson, CEO of BECU credit union, focused on creating financial opportunities, while Gallup CEO Jon Clifton talked about the need for better global indicators of how we feel amid a rise in negative emotions. Southern Company CEO Chris Womack is expanding his energy infrastructure amid surging demand at the country’s second-largest utility. Optimism about the power of technology and innovation was mixed with worries about geopolitics and the state of civil society.

In an era of growing complexity and rapid change, face-to-face conversations have become even more important for sharing ideas and building trusted relationships.  That’s why the dinners hosted by CEO Initiative members around the country have been so valuable. It’s why I’m excited by our upcoming Fortune Global Forum on October 26 and 27 in Riyadh.

Among the CEOs who have confirmed their attendance, so far, are Qualcomm CEO Cristiano Amon, Ed Bastian of Delta Air Lines, Tony Elumelu of United Bank for Africa, Jane Fraser of Citigroup, Mahindra & Mahindra Anish Shah, Catherine MacGregor of ENGIE, Honeywell’s Vimal Kapur, Gilberto Tomazoni of JBS, and Jenny Johnson of Franklin Templeton. You can find out more here and click here if you’d like to apply to attend.

Contact CEO Daily via Diane Brady at diane.brady@fortune.com

Top news

Trump reportedly sent Epstein a birthday note

According to a must-read investigation by the WSJ, the note to Jeffrey Epstein featured a cartoon of a naked woman and said, “Happy Birthday — and may every day be another wonderful secret.” The president denied writing the letter. “This is not me. This is a fake thing. It’s a fake Wall Street Journal story,” he said. On social media, he added, “I don’t draw pictures. I told Rupert Murdoch it was a Scam, that he shouldn’t print this Fake Story. But he did, and now I’m going to sue his ass off, and that of his third rate newspaper.” He also asked the attorney general to release “any and all pertinent Grand Jury testimony, subject to Court approval,” on Epstein. Here is a timeline of the relationship between Trump and Epstein.

How Sam Altman became Trump’s best AI buddy

Initially cut out of the president’s circle by Elon Musk, Altman has been quietly cultivating his relationship with the president, the WSJ reports. With Musk out of the way, Altman is now more influential in the White House. The maneuvering required Altman to renounce his former public dislike of Trump. 

Trump vs. corn syrup

President Trump’s announcement Wednesday claiming that Coca-Cola would substitute corn syrup for raw sugar in their products “cost thousands of American food manufacturing jobs … all with no nutritional benefit,” the CEO of the Corn Refiners Association said on Wednesday. The announcement also caused significant dips in the stock prices of some corn syrup manufacturers between Wednesday and Thursday.

Morgan Stanley on tariffs

Morgan Stanley’s head of US policy, Monica Guerra, describes President Trump’s tariffs as a “mosaic” and “idiosyncratic.” Here’s how much she thinks they’ll bring to the U.S. Treasury—and how they could fuel higher inflation

Europe tightens sanctions on Russia

The EU will impose a new set of sanctions on Russia targeting its oil, gas and banking sectors. Twenty more banks will be cut from the SWIFT payments system and there will be new restrictions on Russian oil refined outside of Russia.

Meta poaches more AI talent from Apple

Former Apple employees Mark Lee and Tom Gunter will join Meta’s Superintelligence Labs, according to Bloomberg. They will join Ruoming Pang, the former head of Apple’s large language model unit, who joined Meta a few weeks ago. Pang was reportedly offered $200 million in compensation to make the move.

Deep dive on the growth of private credit

JPMorgan recently dedicated $50 billion to debt financing for clients doing acquisitions and other deals. Apollo, Ares, and KKR are extending credit that they originate independently to lock in borrowers for years. In exchange for tying up that long-term money, borrowers are willing to pay higher interest rates than they would get from banks.

Fortune 500 Power Moves

  • Kenvue (No. 281) appointed Kirk L. Perry as interim CEO, effective July 14, following the sudden resignation of former CEO Thibaut Mongon. Perry most recently served as President and CEO of Circana. 
  • Henry Schein (No. 333) announced that Stanley M. Bergman will retire as CEO at the end of the year. Schein’s departure comes after 45 years at the company and 35 years as CEO. 
  • Old Republic International (No. 463) appointed Alan Pavlic as CEO, effective immediately. Pavlic joined the company in 2005 and has served as President since 2013. 

The markets

S&P 500 futures ticked up 0.14% this morning, premarket. The index closed up 0.54% yesterday. STOXX Europe 600 was up 0.4% in early trading. The UK’s FTSE 100 was up 0.32% this morning, placing it above 9,000, which would be an all-time high if it holds. China’s CSI 300 was up 0.6%. Japan’s Nikkei 225 was down 0.21%. Bitcoin is still above $118K.

From the analysts

ING on the Fed: “Firmer retail sales and subdued jobless claims numbers suggest the Fed will keep rates on hold for now as officials assess the impact of tariffs on inflation,” per James Knightley.

Oxford Economics on jobless claims: “Continued claims continued their march higher in the week July 5, underscoring how unemployed workers are finding it difficult to find new jobs in a labor market where hiring is slow. Claims for benefits by federal employees posted the largest one-week increase since February. We expect these claims will rise further now that Supreme Court has cleared the way to proceed with layoffs of federal workers while legal challenges continue,” Nancy Vanden Houten.

WARC on Reddit’s revenue and user growth: “Reddit has demonstrated remarkable year-on-year growth with global advertising revenue projected to reach $1.8 billion in 2025 (+49.6%) and grow to $2.5 billion by 2026 (+39.0%), positioning itself as a formidable competitor to established Big Tech and digital platforms. … The platform’s advertising reach has grown to 606 million users — representing nearly one in 14 people worldwide, according to Datareportal analysis, surpassing X’s reach (586 million) and approaching Snapchat (709 million).”

Around the watercooler

Amazon Ring’s founder is back as CEO with a hard pivot to AI. How Jamie Siminoff went from ‘Shark Tank’ reject to $1 billion brand by Sydney Lake

The safety net companies put in place for themselves to stave off higher prices induced by tariffs is fraying by Paolo Confino

How much is AI really replacing jobs? Goldman Sachs looks under the hood and has 3 takeaways to defuse the hype by Nick Lichtenberg and Fortune Intelligence

Coinbase’s new super app Base is a game changer—and could become a serious money maker by Jeff John Roberts

CEO Daily is compiled and edited by Joey Abrams and Jim Edwards.

This is the web version of CEO Daily, a newsletter of must-read global insights from CEOs and industry leaders. Sign up to get it delivered free to your inbox.



Source link

Continue Reading

Trending

Copyright © Miami Select.