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OpenCV founders launch AI video startup to take on OpenAI and Google

by Investor News Today
November 19, 2025
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OpenCV founders launch AI video startup to take on OpenAI and Google
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A brand new synthetic intelligence startup based by the creators of the world's most generally used pc imaginative and prescient library has emerged from stealth with know-how that generates practical human-centric movies as much as 5 minutes lengthy — a dramatic leap past the capabilities of rivals together with OpenAI's Sora and Google's Veo.

CraftStory, which launched Tuesday with $2 million in funding, is introducing Mannequin 2.0, a video era system that addresses probably the most important limitations plaguing the nascent AI video trade: length. Whereas OpenAI's Sora 2 tops out at 25 seconds and most competing fashions generate clips of 10 seconds or much less, CraftStory's system can produce steady, coherent video performances that run so long as a typical YouTube tutorial or product demonstration.

The breakthrough may unlock substantial industrial worth for enterprises struggling to scale video manufacturing for coaching, advertising, and buyer training — markets the place transient AI-generated clips have confirmed insufficient regardless of their visible polish.

"In the event you actually attempt to create a video with one in all these video era programs, you discover that quite a lot of the instances you wish to implement a sure artistic imaginative and prescient, and no matter how detailed the directions are, the programs mainly ignore part of your directions," stated Victor Erukhimov, CraftStory's founder and CEO, in an unique interview with VentureBeat. "We developed a system that may generate movies mainly so long as you want them."

How parallel processing solves the long-form video downside

CraftStory's advance rests on what the corporate describes as a parallelized diffusion structure — a essentially completely different method to how AI fashions generate video in comparison with the sequential strategies employed by most opponents.

Conventional video era fashions work by operating diffusion algorithms on more and more massive three-dimensional volumes the place time represents the third axis. To generate an extended video, these fashions require proportionally bigger networks, extra coaching information, and considerably extra computational assets.

CraftStory as an alternative runs a number of smaller diffusion algorithms concurrently throughout the whole length of the video, with bidirectional constraints connecting them. "The latter a part of the video can affect the previous a part of the video too," Erukhimov defined. "And that is fairly essential, as a result of in the event you do it one after the other, then an artifact that seems within the first half propagates to the second, after which it accumulates."

Reasonably than producing eight seconds after which stitching on extra segments, CraftStory's system processes all 5 minutes concurrently by way of interconnected diffusion processes.

Crucially, CraftStory skilled its mannequin on proprietary footage fairly than relying solely on internet-scraped movies. The corporate employed studios to shoot actors utilizing high-frame-rate digital camera programs that seize crisp element even in fast-moving components like fingers — avoiding the movement blur inherent in customary 30-frames-per-second YouTube clips.

"What we confirmed is that you just don't want quite a lot of information and also you don't want quite a lot of coaching price range to create prime quality movies," Erukhimov stated. "You simply want prime quality information."

Mannequin 2.0 presently operates as a video-to-video system: customers add a nonetheless picture to animate and a "driving video" containing an individual whose actions the AI will replicate. CraftStory gives preset driving movies shot with skilled actors, who obtain income shares when their movement information is used, or customers can add their very own footage.

The system generates 30-second clips at low decision in roughly quarter-hour. A complicated lip-sync system synchronizes mouth actions to scripts or audio tracks, whereas gesture alignment algorithms guarantee physique language matches speech rhythm and emotional tone.

Preventing a conflict chest battle with $2 million in opposition to billions

CraftStory's funding comes virtually totally from Andrew Filev, who offered his challenge administration software program firm Wrike to Citrix for $2.25 billion in 2021 and now runs Zencoder, an AI coding firm. The modest elevate stands in stark distinction to the billions flowing into competing efforts — OpenAI has raised over $6 billion in its newest funding spherical alone.

Erukhimov pushed again on the notion that large capital is prerequisite for achievement. "I don't essentially purchase the thesis that compute is the trail to success," he stated. "It undoubtedly helps if in case you have compute. However in the event you elevate a billion {dollars} on a PowerPoint, in the long run, nobody is comfortable, neither the founders nor the buyers."

Filev defended the David-versus-Goliath method. "Whenever you spend money on startups, you're essentially betting on folks," he stated in an interview with VentureBeat. "To paraphrase Margaret Mead: by no means underestimate what a small group of considerate, dedicated engineers and scientists can construct."

He argued that CraftStory advantages from a centered technique. "The massive labs are in an arms race to construct general-purpose video basis fashions," Filev stated. "CraftStory is using that wave and going very deep into a particular format: long-form, partaking, human-centric video."

Why pc imaginative and prescient experience issues in generative AI video

Erukhimov's credibility stems from his deep roots in pc imaginative and prescient fairly than the transformer architectures which have dominated current AI advances. He was an early contributor to OpenCV — the Open Supply Laptop Imaginative and prescient Library that has turn out to be the de facto customary for pc imaginative and prescient functions, with over 84,000 stars on GitHub.

When Intel diminished its help for OpenCV within the mid-2000s, Erukhimov co-founded Itseez with the express aim of sustaining and advancing the library. The corporate expanded OpenCV considerably and pivoted towards automotive security programs earlier than Intel acquired it in 2016.

Filev stated this background is exactly what makes Erukhimov well-positioned for video era. "What folks typically miss is that generative AI video isn't simply in regards to the generative half. It's about understanding movement, facial dynamics, temporal coherence, and the way people really transfer," Filev stated. "Victor has spent his profession mastering precisely these issues."

Enterprise focus targets coaching movies and product demos

Whereas a lot of the general public pleasure round AI video era has centered on artistic instruments for shoppers, CraftStory is pursuing a decidedly enterprise-focused technique.

"We’re undoubtedly fascinated with B2B greater than shopper," Erukhimov stated. "We're fascinated with firms, particularly software program firms, with the ability to make cool coaching movies and product movies and launch movies."

The logic is easy: company coaching, product tutorials, and buyer training movies usually run a number of minutes and require constant high quality all through. A ten-second AI clip can’t successfully show methods to use enterprise software program or clarify a posh product characteristic.

"In the event you want a longer-form video, then it is best to go together with us," Erukhimov stated. "We are able to create as much as 5 minutes, constant video, prime quality."

Filev echoed this evaluation. "One enormous hole on this market is the shortage of fashions that may generate constant movies over longer sequences — and that's extraordinarily essential for real-world use," he stated. "In the event you're making a industrial to your firm, a 10-second video, regardless of how good it seems, simply isn't sufficient. You want 30 seconds, you want two minutes — you want extra."

The corporate anticipates value financial savings for patrons. Filev steered that "a small enterprise proprietor may create content material in minutes that beforehand would have value $20,000 and brought two months to provide."

CraftStory can be courting artistic businesses that produce video content material for company shoppers, with the worth proposition centered on value and velocity: businesses can report an actor on digital camera and remodel that footage right into a completed AI video, fairly than managing costly multi-day shoots.

The following main improvement on CraftStory's roadmap is a text-to-video mannequin that will permit customers to generate long-form content material immediately from scripts. The group can be growing help for moving-camera eventualities, together with the favored "walk-and-talk" format frequent in high-end promoting.

The place CraftStory matches in a fragmented aggressive panorama

CraftStory enters a crowded and quickly evolving market. OpenAI's Sora 2, whereas not but publicly out there, has generated important buzz. Google's Veo fashions are advancing shortly. Runway, Pika, and Stability AI all provide video era instruments with completely different capabilities.

Erukhimov acknowledged the aggressive stress however emphasised that CraftStory serves a definite area of interest centered on human-centric movies. He positioned fast innovation and market seize as the corporate's major technique fairly than counting on technical moats.

Filev sees the market fragmenting into distinct layers, with massive tech firms serving as "API suppliers of highly effective, general-purpose era fashions" whereas specialised gamers like CraftStory deal with particular use circumstances. "If the large gamers are constructing the engines, CraftStory is constructing the manufacturing studio and meeting line on prime," he stated.

Mannequin 2.0 is obtainable now at app.craftstory.com/model-2.0, with the corporate providing early entry to customers and enterprises keen on testing the know-how. Whether or not a lightly-funded startup can seize significant market share in opposition to deep-pocketed incumbents stays unsure, however Erukhimov is characteristically assured in regards to the alternative forward.

"AI-generated video will quickly turn out to be the first manner firms talk their tales," he stated.



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