Runway Bets Video AI Will Outsmart Google

AI video startup Runway, founded by three art school graduates from Chile and Greece, is pivoting beyond video generation toward world models — AI systems that simulate physical reality rather than just process language. Valued at $5.3 billion, the company added $40 million in annual recurring revenue in Q2 2026 and already powers workflows for Lionsgate and AMC Networks. Runway launched its first world model in December and plans another this year, competing against Google, Luma, and World Labs. Co-CEO Anastasis Germanidis argues that training AI on observational video data, rather than text, is the path to systems that could accelerate scientific discovery and solve humanity's hardest problems.