Moonvalley Secures Funding for Innovative AI Video Tools

Los Angeles-based startup Moonvalley has recently raised an impressive $43 million in venture capital, according to an SEC filing. This funding comes just a week after the company launched its first AI video-generating model, Marey. With a total of $70 million previously secured in seed funding from notable backers like General Catalyst, Khosla Ventures, and Bessemer Venture Partners, Moonvalley is poised for growth in a rapidly evolving market.

The video generation space has seen a surge of new entrants, reminiscent of a Cambrian explosion, raising concerns about market saturation. Startups such as Runway and Luma, along with tech giants like OpenAI and Google, are releasing similar models at an extraordinary pace. As a result, it can be challenging for users to distinguish between these offerings.

Moonvalley’s Marey model, developed in collaboration with a new AI animation studio called Asteria, stands out by providing users with customization options, including fine-grained camera and motion controls. It can generate HD clips up to 30 seconds long while also addressing legal concerns more effectively than many of its competitors. This focus on risk mitigation is particularly important given the ongoing debates surrounding copyright and fair use in the creative industry.

Many video generation startups train their models on public data, which often includes copyrighted material. While these companies argue that fair-use doctrine protects their practices, the reality is that rights holders have raised valid concerns, leading to complaints and legal actions. In light of this, Moonvalley is working with partners to establish licensing arrangements and curate datasets from creators, similar to the approach taken by Adobe with its Adobe Stock platform.

As the landscape evolves, many artists and creators are understandably wary of how AI video generators might disrupt the film and television industry. A recent study commissioned by the Animation Guild estimates that over 100,000 jobs in the U.S. film, television, and animation sectors could be affected by AI advancements by 2026. In response, Moonvalley is committed to allowing creators to request the removal of their content from its models and enabling customers to delete their data whenever they choose.

Moreover, the company has pledged to implement guardrails around its tools. Unlike some unfiltered models, Moonvalley will block certain content types, such as NSFW phrases, and will not allow users to generate videos of specific individuals or celebrities. This commitment to ethical AI practices may help ease concerns among creators and contribute to a more responsible deployment of technology in the creative arts.

Cited: https://techcrunch.com/2025/04/07/ai-video-startup-moonvalley-raised-a-fresh-43m-sec-filing-shows/