Funds Flowing in AI Sector: Hedra, Cartwheel, and Schemata Secure Capital; Google and Meta Make Their Moves in Financial Investments
Hot Off the Tech Press:
Here's the scoop on what's shaking up the AI/XR world!
Meta's Llama app upgrade fuels smart glasses, giving Apple a run for its money. Envy seems to be the flavor of the week as Meta's Ray Ban smart glasses receive an upgrade, leaving Apple scrambling to catch up. Meanwhile, Meta is investing heavily in preteen-dominated Horizon Worlds, a futile attempt to keep pace with Roblox and Fortnite. Some question if Meta has finally hit a game technology cannot conquer.
Google's DeepMind takes the lead with Veo 2. The industry-leading AI video generator is creating quite a buzz, generating 4K videos with impressive control over cinematic elements. Veo 2 supports both text-to-video and image-to-video generation and is accessible via Gemini Advanced and Google AI Studio. There's talk of an impending Veo 3, along with updates to the Gemini models, possibly including the highly-anticipated Gemini Ultra. Be on the lookout, as the upcoming Honor 400 smartphones will feature a Veo-powered image-to-video tool.
Hedra AI scores big with $32 million Series A. Founded last year, Hedra's Character-3 foundation model produces digital avatars that blend text, images, and audio, aiming to assist brands in creating animated mascots or virtual spokespersons. CEO Michael Lingelbach, a former stage actor, emphasizes overcoming the "uncanny valley" challenge in digital video performance. The funding round attracted participation from a16z speedrun, Abstract, and Index Ventures, valuing the company at a cool $200 million.
Netflix's flagship show returns for a wild new season. Microsoft confirms Windows users now have the choice to upgrade, and a dust storm in Chicago has experts scratching their heads.
3D AI animation startup Cartwheel rakes in $10M. Led by Craft Ventures, Cartwheel generates rigged character animations from text or video, reducing animation tasks from hours to minutes. The browser-based platform boasts exports to Maya and Unreal, making it accessible for both professionals and non-technical users. The team includes Pixar, Riot, and Unity veterans, with early adopters from DreamWorks, Roblox, and Take-Two.
Stanford-born startup Schemata emerges from stealth with $5 million in seed funding. The company's training platform combines 3D reality capture, spatial AI, and contextual data to produce personalized, photorealistic simulations. Already in use at the U.S. Department of Defense, the system generates interactive training content 10 times faster and significantly cheaper than traditional methods. Users interact with the platform through an AI Instructor via voice or text, enabling real-time guidance and dynamic scenario adjustments.
Builder Bot, Meta's Horizon World Prompting Tool, finally goes live. AssetGen 2.0, an advanced AI model for generating detailed 3D assets directly from text prompts, is set to be integrated into Meta's Horizon Desktop Editor, streamlining the creation of immersive environments.
Meta launches a new AI chatbot for mobile devices. The app offers standard AI features, including text and voice interaction, image generation, and web search. Its "Discover" feed allows users to view and interact with AI-generated content shared by friends on Instagram and Facebook, adding a social dimension to AI interactions. The app also features an experimental "full-duplex" voice mode and replaces the former View app for Meta's Ray-Ban smart glasses.
Roblox introduces Commerce APIs, allowing creators to sell physical merchandise. Fenty Beauty is launching an exclusive lip gloss shade through its Roblox experience, marking a significant step in merging the physical and virtual worlds.
VRChat officially launches a creator economy. The Avatar Marketplace enables users to buy avatars made by other users directly on the platform, using in-game currency redeemable for actual cash IRL.
Apple's AI smart glasses expected in 2026. Apple is working on a custom chip, based on the Apple Watch's low-power processors, to manage multiple cameras and provide the real-world context necessary for wearable AI.
Tune in to our weekly AI/XR Podcast, co-hosted by a former Paramount futurist, the co-founder of Red Camera, and Rony Abovitz, founder of Magic Leap, Mako Robotics, and Synthbee AI. Find us on Spotify, iTunes, and YouTube. Don't miss this week's special guest, Ori Inbar, co-founder and CEO of AWE!
- The finance industry is closely watching the investment moves of companies like Meta, as they show a significant interest in technology-focused areas, such as gaming and AI, like the upgrade of their Llama app and the heavy investment in Horizon Worlds.
- In the realm of entertainment and technology, Google's DeepMind is making waves with Veo 2, an advanced AI video generator, which has the potential to revolutionize the video industry with its text-to-video and image-to-video generation capabilities.
- The finance landscape is also excited about startups like Hedra AI, which recently secured a $32 million Series A funding, aiming to assist brands in creating digital avatars for animation, mascots, or virtual spokespersons in various lifestyle and business contexts.
