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This AI Avatar Startup Raised $180 Million To Make Corporate Videos Less Boring

Jan 15, 2025 - forbes.com
Synthesia, a British startup co-founded by Victor Riparbelli, has raised $180 million in a funding round led by NEA, valuing the company at over $2.1 billion. The company specializes in AI-generated video avatars aimed at creating engaging corporate training videos, a niche market that has proven lucrative. Synthesia's technology is used by companies like DuPont, Xerox, and Spirit Airlines to produce training content in multiple languages. The startup generated over $70 million in revenue last year, more than doubling its previous year's earnings. With new investments from Atlassian Ventures and PSP Growth, Synthesia plans to enhance the realism of its avatars and simplify video creation and hosting.

Riparbelli emphasizes Synthesia's focus on business content, contrasting it with competitors like OpenAI and Runway, which target broader applications such as Hollywood-ready video tools. While some clients and creators are using Synthesia for marketing and social media content, the technology is not yet ready for advertising or large-scale content production. The company is cautious about content moderation, allowing only corporate clients to produce news or political content, following reports of misuse in disinformation campaigns. As Synthesia develops more generic avatars, Riparbelli acknowledges the growing importance of content moderation.

Key takeaways:

  • Synthesia raised $180 million in funding, valuing the company at over $2.1 billion, to enhance its AI-generated video avatars.
  • The company focuses on creating training videos for corporate clients, with customers like DuPont, Xerox, and Spirit Airlines using its technology.
  • Synthesia plans to invest in making its avatars more lifelike and improving video creation and hosting tools.
  • The company emphasizes content moderation, allowing only corporate clients to produce news-focused or political content, following reports of misuse in disinformation campaigns.
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