AI Just Raised $308M to Replace Hollywood.

Last week was straight-up unhinged. Teen prodigies are getting rejected, VCs are unlocking cash from fake-rich portfolios, and AI is out here making movies without cameras. Let’s get into it before more wild things happen.

Runway: AI Is Directing Now 🎬 ($308M Raised)

Runway, founded in 2018 by Cristóbal Valenzuela, Anastasis Germanidis, and Alejandro Matamala, just raised $308M to supercharge its AI video models. You’ve probably seen their Gen-2 model. It turns simple text prompts into moving, stylized videos. But Gen-3? That’s next level.

💡 Why It Matters:
Gen-3 is expected to generate higher-quality, more realistic video. Imagine full scenes with dynamic camera angles, characters, and even basic editing. Type in: “cyberpunk Tokyo, 2075, drone chase scene” and it spits out a full cinematic clip. No camera, no cast, just code.

This changes everything. Content creators, marketers, studios even solo YouTubers can produce Hollywood-style visuals on a laptop.

🎓 What You Can Learn From This:
The best startups don’t just add features. They remove barriers. Runway makes film-grade video possible without needing a set, crew, or budget.

If you make the creative process faster, cheaper, and fun, creators will come.

🔮 Prediction:
By 2027, there’s a YouTuber with 10M subs who makes every video with Runway. No script, no filming, just vibes, prompts, and edits by AI. Hollywood sues. It doesn’t work.

Turbine: VCs Can Finally Get Paid 💸 ($22M Raised)

Turbine, co-founded in 2020 by Jake Kuczeruk and Daniel Grunstein, just raised $22M to help investors turn their startup stakes into actual cash without selling their shares.

💡 Why It Matters:
Venture capitalists are often “rich” but only on paper. Their money’s locked in startups that won’t sell or go public for years (if ever). Turbine lets them borrow against those shares, get actual cash, and still hold onto their investments.

It’s basically a cash advance but for people who wear Allbirds and call golf “networking.”

🎓 What You Can Learn From This:
Building for rich people isn’t evil if it actually solves a real headache. These folks have money problems too, they’re just fancier.

🔮 Prediction:
By 2026, VCs will be using Turbine to pay rent, tip 12% on $300 meals, and still tweet “we’re early” while living on borrowed equity.

Kid Builds Viral AI App. Colleges Say No 🤯📉

Zach Yadegari, a 17-year-old high schooler from Los Angeles, built Cal.ai, a calorie tracking AI app with over 1 million downloads and 60,000+ reviews. He had a 4.0 GPA, a 34 ACT score, and was rejected by 15 top schools including Harvard and Stanford.

💡 Why It Matters:
Zach didn’t just build something cool, he built something people actually use. Cal.ai became a real app with real traction. He even got into Y Combinator’s Startup School. Still, the colleges said no.

It’s the perfect modern plot twist: you build a hit, go viral, and still get ghosted by the system.

🎓 What You Can Learn From This:
You don’t need a fancy degree to make noise. Just ship. The world doesn’t care about diplomas. It cares about delivery.

Also: if your product hits before you can legally drink, you’re doing something right.

🔮 Prediction:
By next year, someone launches an AI-powered college rejection email generator. It writes: “Unfortunately, you’re too qualified. Please apply after failing at something.”

🔥 MEME BREAK 🔥

Startup Idea of the Week: ClutterClub 📦

Make bank off your background. Literally.

💡 How It Works:
A marketplace where remote workers and content creators rent out space in their Zoom background to brands. You get a QR-coded plant pot, branded bookshelf items, or even a poster that’s secretly an ad.

Every time someone spots it, scans it, or clicks your custom referral link you get paid.
It’s product placement for the home office era.

You get:
– A catalog of “disguised” brand props
– A dashboard to track background engagement
– Payouts based on impressions + click-throughs

💰 Why It’s a Great Idea:
People spend hours a day on video calls and Twitch streams. That’s screen time. Why let your IKEA lamp be free labor when it could be a low-key Samsung ad?

Also, creators are already putting crap in their background for vibes. This just pays them for it.

🔮 Verdict:
At first, it’s subtle. Then it goes full dystopian. Someone turns their living room into a Nascar suit. Brands eat it up. You make $5K/month pretending your bookshelf loves oat milk.

📢 One Last Thing!

Don’t forget to follow us on social media!

🐦 Twitter

📸 Instagram

Got feedback? Loved this issue? Hated it? Think we should shut down forever? Hit reply and tell us. We actually read every message (even the unhinged 2am rants).

You might even end up in the next issue. Who knows…

Thanks for reading.

See you next week. Same time. Same place.

— The FOMO Report Team