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AI creation platform Arcade expands from jewelry to home goods | TechCrunch

Mar 24, 2025 - techcrunch.com
Arcade, a generative AI marketplace initially focused on jewelry design, is expanding into home goods, starting with rugs. The company introduced a "Match My Room" feature that allows users to upload a photo of their room to ensure the rug design complements existing decor. The rug creation tool uses Midjourney and Stable Diffusion, allowing users to select materials and input design prompts. Rugs start at around $400 for a basic hand-tufted wool option, with prices increasing for premium materials. Arcade recently raised $25 million in a Series A funding round, bringing its total funding to $42 million, with plans to use the capital for hiring, platform development, and expanding into new product categories like ceramics and pillows.

Arcade also offers "Dream Boards" for users to create and browse themed design collections, and has a seller program with a 5% commission rate, up from 2.5%. An affiliate program and a new entrepreneur initiative aim to help content creators earn higher commissions. Despite launching its jewelry beta in September 2024, Arcade has generated 650,000 jewelry designs but hasn't disclosed user purchase interest or seller earnings. The company is led by Mariam Naficy, with the Series A round led by Laura Chau of Canaan Partners. Previous investors include Ashton Kutcher, Reid Hoffman, and others.

Key takeaways:

  • Arcade is expanding its generative AI marketplace from jewelry design to include home goods, starting with rugs, and has introduced a new feature called "Match My Room" for color coordination.
  • The company announced a $25 million Series A funding round, bringing its total funding to $42 million, with plans to use the capital for hiring, platform development, and new product categories.
  • Arcade's rug creation tool uses AI technologies like Midjourney and Stable Diffusion, allowing users to design rugs by selecting materials and entering text prompts, with prices starting at around $400.
  • Arcade offers a seller program with a 5% commission rate and an affiliate program, and has launched an entrepreneur program to help content creators earn higher commissions.
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