Synthesia is a platform that allows users to create AI-generated clips using human avatars that can speak multiple languages.
Synthesis
LONDON — Synthesia, a video platform that uses artificial intelligence to create clips with multilingual human avatars, has raised $180 million in an investment round that values the startup at $2.1 billion.
That's more than double Synthesia's $1 billion valuation in its last financing in 2023.
The funding round was led by venture firm NEA, with participation from Atlassian Ventures, World Innovation Lab and PSP Growth, the London-based startup said on Wednesday.
NEA accuses Uber TikTok's parent company ByteDance is among its portfolio companies. Synthesia is also backed by Chip Giant Nvidia.
Synthesia CEO Victor Riparbelli told CNBC that investors evaluated the business differently from other companies in the space because of its focus on “utility.”
“Of course, the hype cycle is good for us,” Riparbelli said in an interview. “For us, what's important is building a really good business.”
Riparbelli added that Synthesia does not “rely” on venture capital, unlike companies like OpenAI, Anthropic and Mistral.
These startups have raised billions of dollars at eye-popping valuations while spending significant amounts of money to train and develop their core AI models.
Synthesia isn't the only startup shaking up the world of video production with AI. Other startups offer solutions for producing and editing video content using AI, e.g Veed.io And the runway.
Meanwhile, the likes of OpenAI and Adobe They also developed generative AI tools for video creation.
Eric Liao, a London-based partner at VC IVP, told CNBC that companies in the AI application layer have not received as much hype from investors as companies in the infrastructure layer.
“The amount of money that application layer companies need to raise is not as large — so the valuations are not necessarily as eye-catching” as companies like Nvidia, Liao told CNBC last month.
Riparbelli said the money raised from the latest funding round will be used to invest in “more of the same,” enhancing product development and investing more in security and compliance.
In the past year, Synthesia has made a series of updates to its platform, including the ability to produce AI-powered avatars using a laptop or phone's webcam, full-body avatars with arms and hands, and a screen recording tool that features an AI avatar that guides users Through what they do. Rewatch.
On the AI safety front, Synthesia in October a General red team testing Online Harm Risk, which showed how the company's compliance controls address attempts to create deepfakes without people's consent or use its avatars to encourage suicide, adult content or gambling.
The National Institute of Standards and Technology testing was led by Roman Chowdhury, a renowned data scientist who was formerly head of AI ethics at Twitter — before it became known as X under the name X. Elon Musk.
Riparbelli said Synthesia is seeing increasing interest from large enterprise customers, especially in the United States, thanks to its focus on security and compliance.
More than half of Synthesia's annual revenue now comes from customers in the United States, with Europe accounting for nearly half.
Synthesia is also ramping up hiring. The company recently appointed Peter Hill, a former Amazon executive, as chief technology officer. The company now employs more than 400 people globally.
Synthesia's announcement follows revelations from Prime Minister Keir Starmer A 50-point plan to make the UK a world leader in AI.
UK Technology Minister Peter Kyle said the investment “demonstrates investor confidence in British technology” and “highlights the global leadership of UK-based companies in pioneering AI innovations”.
