Podcast Summary: AI Companies That Raised Over $100M+ | Pt. 5

Podcast: AI Hustle: Make Money from AI and ChatGPT, Midjourney, NVIDIA, Anthropic, OpenAI
Hosts: Jaeden Schafer (B) and Jamie McCauley (A)
Date: January 7, 2026

Overview

This episode continues the series on AI companies that have raised over $100 million in the past year, highlighting the diversity and scale of investment flowing into the AI sector. Jaeden and Jamie break down the impact and insight behind major funding rounds, spotlighting under-the-radar players and well-known giants alike. The conversation focuses on recent funding, business models, and why these companies are generating so much excitement (and capital) in the AI ecosystem.

Key Discussion Points & Insights

1. SandboxAQ – Post Quantum Cryptography & Beyond

[00:35 - 03:14]

• SandboxAQ closed a Series E round, raising $450 million at a $5.7 billion valuation.
  • Major investors include Nvidia, Google, Bridgewater Associates, and Ray Dalio.
• Focus: Post-quantum cryptography defense—protecting encrypted data from future quantum computer threats.
• Notable partnership: Contract with Bahrain’s sovereign fund to accelerate drug discovery and alliances with the DAO for AI and security efforts.
• Both hosts agree the company is doing “a whole bunch of big things with big companies and big people,” though it remains relatively obscure outside tech circles.
• Quote:
  • "Once quantum computing takes over and quantum computers can crack all of your cryptography, what are you going to do? You're going to go to SandboxAQ..." – Jaeden [01:24]

2. Runway – AI Video Generation for Hollywood and More

[03:14 - 04:56]

• Runway raised $308 million in April (Series D), valued at $3 billion.
  • Backed by General Atlantic, SoftBank, Nvidia, Fidelity, among others.
• Specialization: High-fidelity, cinematic AI video generation with advanced color grading and lighting—positioning Runway as the favored tool for professional content creators and Hollywood studios.
• Use cases include TV commercials (e.g., Under Armour), documentary/educational content (History Channel), and scene creation for Amazon’s “House of David.”
• Hosts note Runway’s focus on the professional/industrial market, compared to competitors like OpenAI’s Sora (“more for goofy videos”).
• Quotes:
  • "Runway is, I feel like, more cinematic. Could definitely be more used in Hollywood..." – Jamie [03:38]
  • "No shocker that they were able to raise $308 million at a $3 billion valuation. And of course, they had Nvidia who put some money in there because Nvidia sells them chips and wants their money back." – Jaeden [04:35]

3. Snorkel AI – Data Labeling for Enterprise & AI Training

[04:56 - 06:35]

• Snorkel AI completed a $100 million Series D (valued at $1.3 billion), with investors such as Lightspeed Ventures and Greylock.
• Focus: Data labeling at scale, crucial for training and refining machine learning models.
• Context: Following the high-profile acquisition of Scale AI (and subsequent vendor shifts by OpenAI and Google), Snorkel AI occupies a strategic position as a neutral provider.
• Jaeden provides industry insight into how these companies monetize, noting the lucrative nature of data labeling post-Scale AI’s acquisition.
• Quote:
  • "Snorkel AI feels like it's kind of filling in some of the gaps because after that happened, OpenAI and Google both were like, we're not going to use Scale AI anymore..." – Jaeden [06:10]

4. LM Arena – The $100M Benchmarking Tool

[06:35 - 09:36]

• LM Arena raised $100 million in a seed round (valued at $600 million).
• Primary function: Community-driven benchmarking tool for AI models, acting as the industry “gold standard” for comparative subjective evaluation.
• Structure: Users test models side by side (e.g., “tell me a joke”), picking their favorite response—offers real-time, blind model comparison without brand bias.
• Impact: Model creators (like OpenAI, Anthropic, Google) launch incognito models on LM Arena, using crowd-sourced feedback to inform public release decisions.
• Jaeden emphasizes LM Arena’s resistance to “gaming” by vendors—making it uniquely credible among benchmarks.
• Quotes:
  • "The thing that I love about LM Arena is basically anytime a new AI model gets released, they always quote how they did on Ella Marina. It's basically the number one benchmark." – Jaeden [07:18]
  • "Sometimes you can kind of game the benchmarks... The one that feels like you cannot game it is LM arena because it's basically you get two responses side by side, you pick which one you prefer..." – Jaeden [08:37]

Notable Quotes & Memorable Moments

• "Once quantum computing takes over and quantum computers can crack all of your cryptography, what are you going to do? You're going to go to SandboxAQ..." – Jaeden [01:24]
• "Runway is, I feel like, more cinematic. Could definitely be more used in Hollywood..." – Jamie [03:38]
• "No shocker that they were able to raise $308 million at a $3 billion valuation..." – Jaeden [04:35]
• "Snorkel AI feels like it's kind of filling in some of the gaps because after that happened, OpenAI and Google both were like, we're not going to use Scale AI anymore..." – Jaeden [06:10]
• "The thing that I love about LM Arena is basically anytime a new AI model gets released, they always quote how they did on Ella Marina. It's basically the number one benchmark." – Jaeden [07:18]

Timestamps for Key Segments

• [00:35] – SandboxAQ overview, funding, key activities
• [03:14] – Runway’s funding, specialization, Hollywood applications
• [04:56] – Snorkel AI’s business and industry context
• [06:35] – LM Arena explained, value for AI benchmarking

Tone & Style

• Conversational, insightful, and full of practical anecdotes
• Focused on actionable industry analysis, with a bias for founder/insider perspectives
• Both hosts share enthusiasm for underappreciated AI innovations and community-driven tools

Takeaway

This episode spotlights the vast sums and high-stakes competition driving AI innovation—from cryptography to movie studios to benchmarking infrastructure. The hosts provide not just headlines, but the "why it matters" behind each company's rise, offering valuable perspective for entrepreneurs, technologists, and AI enthusiasts.