---
title: Sand.ai raises $200 million in Series A+ funding at a valuation exceeding $1 billion
url: https://www.elseif.net/sandai-raises-200-million-in-series-a-funding-at-a-valuation-exceeding-1-billion
published: 2026-11-09T20:03:13+00:00
language: en
section: Models
source: https://www.cnbeta.com.tw/articles/movie/1585348.htm
organizations: Sand.ai, CoStone Capital, Wangsu Science & Technology, Pudong Venture Capital, Shanghai International Group, iMPC
publisher: elseif
---

# Sand.ai raises $200 million in Series A+ funding at a valuation exceeding $1 billion

Sand.ai, a Chinese artificial intelligence video generation startup, announced on November 5 that it has secured $200 million in Series A+ funding. This round values the company at more than $100 million, officially classing it as a unicorn enterprise. The Beijing-headquartered company was founded just over two years ago and has gained significant investor interest due to the rapid development of its video foundation models and its initial market products.

The funding round attracted participation from industrial capital, government-backed investment institutions, RMB funds, and dollar investors. CoStone Capital and Wangsu Science & Technology, an internet infrastructure company listed in Shenzhen, co-led the round. Pudong Venture Capital and investment entities under the Shanghai International Group also participated. Existing shareholders, including iMPC, formerly known as Matrix Partners China, CAS Star, and HyT Capital, continued to invest in the company.

This is the third funding round completed by Sand.ai in 2026. Over the past ten months, the company has raised a cumulative total of $300 million. Earlier this year, Sand.ai raised over $100 million through two separate rounds in a period of less than five months. Previous investors in the company include Lollapalooza Capital, the family office of Wang Huiwen, a co-founder of Meituan, as well as IDG Capital, Baidu Ventures, and Sinovation Ventures.

Founded in early 2024, Sand.ai aims to reduce video production costs and shorten content creation cycles using generative video models. The company seeks to enable individuals and businesses to produce high-quality video content with a lower barrier to entry. Sand.ai has released several video generation models to date. The Magi-1 model uses an autoregressive architecture to generate video content step by step. The GAGA-1 model focuses on the synchronized generation of audio and video, aiming for integrated audiovisual creation. The company recently released the MAGI-2 Preview as an open-source research preview to demonstrate the technical progress of its next-generation model.

In terms of commercialization, Sand.ai's paid AI video creation platform, VidMuse, has achieved initial success. The platform offers generation tools for music videos, product advertisements, and anime short dramas. After its official launch in January, the platform's annual recurring revenue surpassed $10 million within two months. This performance indicates that AI video generation technology is moving beyond model demonstrations and research experiments, with some products beginning to generate direct market revenue.

The funds from this round will be primarily used for the research, development, and training of video foundation models, the construction of inference infrastructure, product iteration, and global market expansion. The company also plans to launch the official version of MAGI-2 in the near future to further complete its video generation model product system. Sand.ai's entry into the unicorn ranks reflects the capital market's continued attention to the commercial prospects of AI video generation technology. Unlike large technology companies that rely on massive computing power and comprehensive platforms, Sand.ai attempts to establish its own market space through focused video foundation models, open research models, and paid creation tools. The actual performance of MAGI-2, the ability of VidMuse to sustain revenue growth, and the company's expansion in overseas markets will be key factors in testing whether its high valuation is supported.