Zuckerberg Keeps Up AI Chase: Meta Reportedly Tried — And Failed — To Buy Video Startup Runway

Meta Platforms, Inc. (META) has doubled down on its artificial intelligence pursuit, as evident from its $14 billion investment in Scale AI. A new report claims Meta CEO Mark Zuckerberg had discussed potentially buying video startup Runway AI.

Meta has been one of the frontrunners in the AI race as mega-cap techs deepen their investments in the hot-and-happening technology.

A Bloomberg report, citing people familiar with the matter, said the deal talks did not progress to a former offer level and were not ongoing.

Founded in 2018, Runway AI is an applied AI research company that creates AI-powered content creation tools for the media and entertainment sectors. 

The company recently raised $300 million in Series D financing in a funding round led by General Atlantic, with participation from Fidelity Management & Research Company, Baillie Gifford, Nvidia, SoftBank Vision Fund 2, and other new and existing investors. The funding round gave the company a valuation of $3 billion. 

The Meta stock has been one of the better-performing mega-cap tech stocks this year, having gained about 20%.

Earlier this month, a Bloomberg report said Zuckerberg assembled a “secretive new team,” internally dubbed the “superintelligence group,” to outdo the company’s larger tech rivals in achieving what is referred to as “artificial general intelligence.”

The billionaire reportedly prioritized recruitment and interviewed people from a brain trust of AI researchers and engineers at his homes in Lake Tahoe and Palo Alto.

Meta has been rapid in scouting for AI talents and adding new capabilities through acquisitions. After the company confirmed its acquisition of a minority stake in Scale AI and hired its founder, Alexander Wang, media reports said it had earlier eyed AI search startup Perplexity.

Another report said Meta tried to buy ex-OpenAI executive Illya Sutskever’s startup Safe Superintelligence, but its offer was rebuffed. 

Recently, OpenAI’s Sam Altman said in a podcast that Meta made “crazy” and “giant” offers to poach the AI startup’s key personnel. 

The AI video creation space is heating up, with major tech players stepping in. Last month, Google unveiled Veo 3, an AI video generator that produces visuals and integrates audio, a key differentiator from OpenAI’s competing tool, Sora.

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