The dynamic landscape of AI video generation, former DeepMind talents, Yishu Miao and Ziyu Wang, have unveiled Haiper, a cutting-edge video-generation tool featuring its own AI model. Stemming from their expertise in machine learning, the duo initially delved into 3D reconstruction using neural networks before pivoting towards the captivating realm of video generation approximately six months ago.Haiper has successfully secured $13.8 million in a seed funding round led by Octopus Ventures, with 5Y Capital also  participating. Prior to this, the company raised $5.4 million in a pre-seed round in April 2022, with support from angels like Phil Blunsom and Nando de Freitas.

The user-friendly Haiper website allows users to generate videos for free by entering text prompts, albeit with certain limitations on video duration. The platform also offers features such as animating images and repainting videos in different styles, with plans to introduce capabilities like video extension in the pipeline. While currently focusing on its consumer-facing website, Haiper aims to develop a core video-generation model that could be offered to others. The company has explored potential commercial applications through collaborations with companies like JD.com. CEO Yishu Miao emphasized the importance of addressing the uncanny valley problem in AI-generated videos, focusing on fundamental issues like the realistic depiction of human-like figures in motion or snow falling.

Haiper faces stiff competition, notably from OpenAI's Sora, Runway backed by Google and Nvidia, as well as video-generation models from Google and Meta. Octopus Ventures partner, Rebecca Hunt, anticipates Haiper's need to build a strong video-generation model for market differentiation over the next three years. As the AI-powered video-generation market evolves, investors recognize the technology's potential but acknowledge the need for continued improvement before it reaches widespread consumer adoption, akin to the 'ChatGPT moment' predicted by a16z's Justine Moore last year. With around 20 employees, Haiper is actively recruiting for various roles in engineering and marketing as it navigates the competitive landscape ahead.