Creative Runway AI expands into brass tacks robotics and self-driving car simulation

Runway AI, the $3 billion video generation company, is expanding beyond creative tools into robotics and autonomous vehicle training after receiving inbound interest from firms in those industries. The move leverages the company’s existing world models to tap into rapidly growing simulation markets, with backing from major investors including Nvidia, Alphabet, and General Atlantic.

The big picture: Runway’s pivot reflects how generative AI is increasingly shaping robotics and self-driving development, positioning the company to capture demand in markets projected to grow from $16.5 billion combined in 2025 to over $51 billion by 2034.

Market opportunity: The numbers underscore significant growth potential across multiple simulation sectors.

• The global autonomous vehicle simulation market is valued at $1.4 billion in 2025 and projected to reach $7.3 billion by 2034, representing a 20.4% compound annual growth rate.
• The broader simulation market is expected to grow from $15.1 billion in 2025 to $44.3 billion by 2034.
• Runway’s world models can generate video clips up to 30 seconds long while maintaining consistent visual elements across scenarios.

Why simulation matters: Testing robotics and autonomous systems in real-world environments proves both expensive and time-consuming.

• Engineers can use simulation to change one variable while keeping others constant, something difficult to achieve in live settings.
• Runway’s background in visual generation gives it a potential advantage in creating realistic training environments.

In plain English: Instead of testing self-driving cars on actual roads or training robots in real factories—which costs millions and risks accidents—companies can create virtual environments that look and behave like the real world. Think of it like a hyper-realistic video game where engineers can safely test “what if” scenarios thousands of times.

Strategic approach: Rather than building new models from scratch, Runway plans to fine-tune its existing technology for robotics applications and establish a dedicated team for this market.

Competitive landscape: The expansion sets up both collaboration and competition dynamics with Runway’s own investors.

• Nvidia, the AI chip giant, has entered the space with its Cosmos world models, creating potential overlap despite being a Runway backer.
• Alphabet could leverage this technology through its self-driving unit Waymo.
• Traditional simulation software companies like Ansys, Siemens, and Autodesk may face new competitive pressure as demand builds.

Investor implications: While Runway remains private with no direct stock trading available, the company’s pivot signals broader market trends that could impact publicly traded simulation and robotics firms.