Los Angeles-based startup Moonvalley has raised $43 million in venture capital to further develop its AI tools for video creation, according to a recent SEC filing. This fresh injection of funds comes on the heels of the company's launch of its first AI video-generating model, Marey, just a week prior.

The SEC filing lists 11 unnamed investors, adding to Moonvalley's previous $70 million in seed funding from prominent backers including General Catalyst, Khosla Ventures, and Bessemer Ventures. A spokesperson for Moonvalley clarified that the filing "does not dictate the total funding number" and that the actual amount will be formalized and announced in the coming weeks.

Moonvalley's Marey model, built in collaboration with AI animation studio Asteria, offers advanced customization options, including fine-grained camera and motion controls, and can generate high-definition clips up to 30 seconds in length. The company claims its approach is lower risk from a legal perspective, as it works with partners to handle licensing arrangements and packages videos into datasets that it purchases.

This approach is similar to Adobe's, which procures video footage for training from creators through its Adobe Stock platform. This strategy aims to mitigate the risks associated with training models on public data, some of which may be copyrighted. Many generative video startups face legal challenges, with rights owners lodging complaints and filing cease and desists, citing copyright infringement.

The growth of AI video creation tools has sparked concerns among artists and creators, who fear that these technologies could disrupt the film and television industry. A 2024 study commissioned by the Animation Guild estimates that over 100,000 U.S.-based film, television, and animation jobs will be disrupted by AI by 2026. In response, Moonvalley has committed to building guardrails around its creative tooling, including allowing creators to request content removal, offering data deletion, and providing an indemnity policy to protect users from copyright challenges.

Unlike some "unfiltered" video models, Moonvalley's tools will block certain content, such as NSFW phrases, and won't allow users to prompt them to generate videos of specific people or celebrities. This move is seen as a step towards responsible AI development, as the industry grapples with the ethical implications of these technologies.

The AI video creation market is rapidly becoming crowded, with startups like Runway and Luma, as well as tech giants like OpenAI and Google, releasing models at a fast clip. Moonvalley's fresh funding and focus on responsible AI development position it as a key player in this space, as the industry continues to evolve and mature.

As the AI video creation landscape continues to shift, Moonvalley's commitment to building guardrails around its tools and addressing copyright concerns could set a new standard for the industry. With its latest funding round, the company is well-positioned to drive innovation and growth in this rapidly expanding market.