U.S.–based generative video startup Luma AI has raised a $900 million funding round led by Saudi-backed HUMAIN (Public Investment Fund) and other investors, bringing its valuation to over $4 billion.

The company specialises in multimodal “world models” that generate video, image and audio content from prompts, aiming at use-cases in entertainment, advertising and robotics.
Part of the funding is earmarked for building a multi-gigawatt-scale AI compute infrastructure in Saudi Arabia (Project Halo), highlighting the growing geographic diversification of frontier-AI infrastructure.

For the broader IT sector, the round underscores the rising significance of video-centric generative AI and its impact on creative/production workflows, media supply chains and enterprise content generation. However, there are warnings around ethical use, copyright implications and compute-cost pressures.