Video generation startup Luma AI announced it raised $900 million in a funding round led by Humain, an AI company owned by Saudi Arabia’s Public Investment Fund, with participation from AMD Ventures, Andreessen Horowitz, Amplify Partners, and Matrix Partners. The round values Luma at over $4 billion. Luma develops multimodal “world models” that learn from text, video, audio, and images to simulate reality, expanding beyond traditional large language models. CEO Amit Jain said the funding will accelerate the training and deployment of these models. Luma released Ray3 in September, a reasoning video model capable of generating videos, images, and audio from prompts, benchmarking higher than OpenAI’s Sora 2. Luma and Humain will collaborate on Project Halo, a 2-gigawatt AI supercluster in Saudi Arabia, one of the largest GPU deployments globally. The partnership also includes initiatives to create Arabic sovereign AI models, ensuring regional languages and cultures are represented. Luma is integrating safeguards in its flagship platform, Dream Machine, to prevent IP misuse, addressing concerns about copyright in AI-generated content.