AI video startup Synthesia raises $200M, valuation hits $4B

London-based AI video generation startup Synthesia has closed a $200 million funding round led by GV, Alphabet’s venture firm, nearly doubling its valuation to $4 billion. The significant funding increase—from a $2.1 billion valuation in January—reflects growing enterprise demand for AI-generated video content, particularly as companies seek to transform traditional training materials into engaging, multilingual video presentations.

What you should know: Synthesia specializes in creating AI avatars that help large enterprises convert training manuals and corporate content into videos across more than 100 languages.

• Major clients include chemical giant DuPont, printer-maker Xerox, and airline Spirit, which use the platform for safety briefings and training videos.
• The company crossed $100 million in annualized revenue in April, demonstrating strong market traction in the enterprise sector.

The big picture: The funding comes amid intense competition in the AI video generation space, with Synthesia facing pressure from both established players like Adobe and newer entrants such as HeyGen.

• Adobe reportedly discussed acquiring Synthesia for $3 billion but negotiations failed due to price disagreements, according to The Information.
• HeyGen recently announced reaching the $100 million annual recurring revenue milestone, highlighting the rapid growth potential in this market segment.

Strategic positioning: CEO Victor Riparbelli, a Forbes 30 Under 30 alum, emphasized the company’s focus on business applications rather than consumer-oriented video generation like OpenAI’s Sora.

• “We don’t care about AI video as in ‘here’s a thing that can make absolutely anything you can think of,'” Riparbelli said in January. “We only care about humans and videos and presenters for business content.”
• The company plans to expand beyond training content into marketing and advertising videos, with some TikTok creators already using the platform.

Competitive landscape: Synthesia’s enterprise-focused approach differentiates it from consumer AI video tools, positioning the company to capture business spending on corporate communications and training.

• Adobe continues adding AI features to its established photo and video editing suite, leveraging its existing customer base.
• The startup, founded in 2017, has previously received investment from Adobe Ventures, creating an interesting dynamic given the failed acquisition talks.