• Hedra, a generative AI platform, creates images, video, and audio, with a focus on characters.
• Hedra raised $32 million in Series A funding led by Andreessen Horowitz's Infrastructure fund.
• Read the pitch deck the startup used to raise its latest funding.

A video of a baby interviewing a dog on a podcast went viral last month.

No, it wasn't real. It was an AI-generated video created by comedian Jon Lajoie, who used Hedra, an AI video generation platform, to make the animation.

Hedra's platform allows users to generate images, video, and audio with its web-based content creation studio.

"Our model and technology focuses on the most controllable, compelling characters, whether that's a hyperrealistic human or an animated character or even an animal," Hedra's CEO, Michael Lingelbach, told Business Insider.

On Thursday, Hedra announced that it raised a $32 million Series A fundraising round led by Andreessen Horowitz's Infrastructure fund. The round included returning investors such as A16z Speedrun, Abstract, and Index Ventures.

Since its launch in 2024, the AI video startup has rapidly raised capital. In August, it announced a $10 million seed investment round. In March, Amazon's Alexa Fund announced that it invested in the startup and several other AI companies. Hedra said it has raised a total of $44 million but has not disclosed a valuation.

Competition in the generative AI is hot, with buzzy companies like Captions, HeyGen, Synthesia, and Runway building tech around video and avatars (Hedra specified that it is not an avatar company).

"We're not trying to compete with Google Veo, we're not trying to compete with Sora," Lingelbach said. "We're focusing really firmly on building the best character models, and that's something that with this additional capital we can make another step function in doing."

Hedra's Character-3 "omnimodal" model combines images, text, and audio to generate video. Creating a character with Hedra begins by uploading an image and then uploading audio that they've either already recorded (like a podcast) or generated using text-to-speech models like ElevenLabs.

"Both voice and video are seeing rapid evolution right now," Lingelbach said. "We took a big leap forward on naturalness of expression with our current model."

Hedra's platform is also users to integrate outside models like ElevenLabs, Google Veo, and Flux "all in one workflow," Lingelbach said.

Expanding beyond the creator economy

Hedra's core user base has been professional creators and marketers, Lingelbach said.

"We're already seeing a massive influx of AI-generated content," Lingelbach said. "My Instagram and TikTok feed are filled with various memes and also more serious content now that's AI-generated."

From comedy skits to faceless creator content to … talking babies, Hedra's already seen a wide range of use cases. Podcast content, particularly, has been a popular application of Hedra's tech.

"It's not really something that we anticipated initially, but it definitely has been driving a lot of our usage," he said.

In addition to the viral trend of AI baby-hosted podcasts that people have been creating using Hedra, others have used Hedra to create Studio Ghibli-style videos of the classic podcast interview clip.

With its recent raise, Hedra plans to expand into more enterprise marketing applications, expand its team, and open an office in New York City.

Read the pitch deck Hedra used to raise its Series A:

Note: Some slides have been redacted in order to share the deck publicly.

Hedra is focused on storytelling and characters.

Here's what the slide says:

Every good story is crafted around characters.
But until now, creating compelling characters has been the most challenging part of content creation.

The deck explains Hedra's 'omnimodal foundation model' that lets people quickly generate digital characters.

Here's what the slide says:

At Hedra, we've built the world's best character performance model that uniquely combines video, voice, motion, and emotion in a way never before possible.

• Hedra's Character-3 model is the world's first omnimodal foundation model in production.
• The only model that supports human, animated, and animal characters. And it works with any angle or framing.
• Built to prioritize efficiently scaling unified models
• The entire model was developed with a budget of under $2 million

Hedra's customers range from everyday consumers to creators and marketers.

Here's what the slide says:

We've seen three key customer segments rely on Hedra for their various character performance needs.

Consumers

Consumers love the fun content they can create on Hedra — ranging from memes to music videos to short films.

Prosumers

Prosumers are using Hedra for use cases such as video podcasts, social media, and developing IP.

Marketing Teams

Marketing teams are using Hedra to create UGC, product tutorials, and other content to drive sales conversions.

Hedra has plans to expand into more enterprise offerings.

Here's what the slide says:

And we've already gotten heavy inbound interest from businesses for professional use and have signed notable early enterprise customers.

Upcoming Enterprise Features:

• Teams management
• IP Guards
• Enterprise-level security

The deck highlights Hedra's research team and its proprietary tech.

Here's what the slide says:

Hedra is poised to be the first company to shatter the "uncanny valley."

• We have a best-in-class research team that enables us to train proprietary omnimodal models that no competitor can develop
• We're a product focused company that builds foundation models for real world applications, listens to our users, and ships frequently.
• We're a capital efficient team that built Character-3 on under $2M in capital and a small research team.

Then the deck introduces the team.

Here's what the slide says:

We've assembled the best team to own this category — marrying deep research with AI-Native product design.

Key Leadership Team:

Michael Lingelbach: Founder / CEO

• Stanford PhD student of Fei-Fei Li and Jiajun Wu. Senior author of 3 real-time diffusion papers. Recipient of prestigious Stanford Graduate Fellowship.

Hongwei Yi: Head of Research

• Former PhD Student of Michael Black, principal researcher behind first audio to video diffusion model to hit the market in the US.

Wei Li: Research Lead

• Core contributor to Google Bard/Gemini, PaLM-2 and T5, with 8+ years experience at Google Brain/Deepmind.

Jason Wilson: Head of Engineering

• Previously led engineering at Nava Benefits (Thrive-backed Series B startup) and engineering manager at Descartes Labs.

Alan Guo: Chief of Staff

• MBA from Harvard Business School. Previously worked in growth & strategy at Disney, Jubilee Media, and Firework.

Ramin Keene: Principal Engineer

• Former CTO at StockX and two-time founder.

Hedra concludes its deck by saying 'we're just getting started.'

Here's what the slide says:

We're on a mission to build the world's best end-to-end storytelling platform. And we're just getting started.

• We've already built the world's leading character performance model on just a $2M budget.
• Prosumers, consumers, and enterprise marketers love and depend on us for their content.
• We're now working on even larger feature releases that will reinvent creation workflows.

It ends with a thank you slide.

This includes contact information for its CEO.

• Instagram chief Adam Mosseri testified in Meta's antitrust trial on Thursday.
• The FTC claims Meta's acquisitions of Instagram and WhatsApp created an illegal monopoly.
• Regulators want Meta to sell off Instagram and WhatsApp.

Instagram chief Adam Mosseri took the witness stand on Thursday in Meta's landmark antitrust trial in Washington, DC, federal court.

Mosseri, who has been at the helm of Instagram since 2018, is among the more than two dozen witnesses that the Federal Trade Commission has called to testify in the case.

The FTC argues in its case against Meta that the company violated antitrust laws when it "helped cement" an illegal monopoly in the social networking market with its acquisitions of Instagram in 2012 and the messaging app WhatsApp two years later.

The case, to be decided by Judge James Boasberg, could be one of the most consequential antitrust trials in years. If FTC regulators have their way, Meta could be forced to sell off WhatsApp and Instagram.

Mosseri began his tenure at Meta, formerly called Facebook, in 2008. Here are five insights and revelations we learned from his more than six hours of testimony:

Mark Zuckerberg's 'strained' relationship with Instagram's founders

Mosseri recalled a 2018 email he sent to Meta CEO and founder Mark Zuckerberg while on paternity leave, warning that Instagram cofounders Kevin Systrom and Mike Krieger were increasingly frustrated with strategy changes.

He wrote that it was "hard for me to get a read on what's going on as the relationship was strained."

Mosseri cited two core tensions: Zuckerberg's belief that slowing Instagram's growth would benefit Meta overall.

Mosseri acted as a mediator, relaying concerns between the founders and Facebook leadership.

These tensions foreshadowed a deeper rift that culminated in the cofounders' departure later that year, a turning point that saw Mosseri take over the reins at Instagram.

Worry over TikTok cutting into Instagram's growth

TikTok's meteoric rise was a massive threat to Instagram, Meta has argued.

"TikTok is probably the fiercest competition we have faced during my tenure at the company," Mosseri testified on Thursday.

According to internal Meta documents presented in court, TikTok was a "big concern" in 2019, just as the ByteDance-owned app was taking off. Instagram data scientists presented a "conservative estimate" that 40% of Instagram's year-over-year decline in time spent was due to TikTok. Specifically in the US, Instagram estimated a 23% decline in time spent.

Instagram would go on to launch its own short-form video product, Reels, in 2020.

Mosseri also testified that he briefed Zuckerberg "very often" about the competition with TikTok, adding that there was a monthly dinner with the most senior executives at Meta where this would come up.

"It became kind of a hazing ritual for me to give an update on Reels," Mosseri said.

Mosseri's 'biggest mistake'

On the stand, Mosseri testified that Instagram's first version of Reels was his "biggest mistake," built on the "not a sound foundation" of Stories, which the feature was initially built into.

The feature flopped and was ultimately scrapped after nearly a year. Mosseri said before he joined Instagram that it tried another venture to compete with TikTok called IGTV — that too failed.

Instagram pivoted by relaunching Reels as a dedicated feature in the main feed, a reboot that finally gained traction amid the pandemic and TikTok's rapid rise. Mosseri said that the company "could have and should have been more aggressive" in responding to what he called Meta's fiercest competitor.

Hundreds of millions on content creators

Instagram's fight with TikTok and other apps is just beginning, Mosseri testified.
Mosseri said that one of the biggest fights right now is over future creators, those who are just beginning to make content or who haven't even started. He said TikTok has done a better job allowing small creators to rapidly expand their reach, something Meta is actively trying to cut into.

In terms of overall investment, Mosseri said that Meta has spent "hundreds of millions, maybe a billion or two" during his time at the company supporting the wider creative ecosystem.

That touches everything from incentive payments to the physical infrastructure necessary to power Instagram's AI-backed recommendations.

"We are just seeing more and more power shift from institutions to individuals across the industry," Mosseri testified.

Instagram's struggles around content safety

Susan Musser, the FTC attorney who led Mosseri's questioning, repeatedly questioned the Instagram head over his initial concerns about how the app was ensuring the safety of its content.

Mosser pointed to an email from October 19, 2018, less than a month after Mosseri became head of the app, in which he said that Facebook was not investing enough in Instagram's Well-being team.

"I think we're underinvested in Well-being and were, until recently, the resources we do have are underleveraged," Mosseri wrote to someone whose full name was redacted. The initial email the person wrote was titled, "need to prioritize integrity efforts over growth — we must fight fakes."

An internal Facebook document also showed that Instagram had significantly fewer engineers devoted to well-being than the main app. According to the 2018 summary, Instagram had 40 engineers dedicated to doing such work. Facebook had 900.

Meta lawyer Aaron Panner later asked Mosseri if Meta employees typically received everything they requested.

"Never," Mosseri said.

• Instagram has been throwing cash at content creators for years.
• During the FTC v. Meta antitrust trial, Instagram's top exec, Adam Mosseri, revealed how much.
• Mosseri said Instagram has "invested hundreds of millions" into creators.

Instagram has spent big bucks on wooing content creators.

Adam Mosseri, Instagram's top executive, took the stand on Thursday to testify during the ongoing FTC antitrust trial against Meta. The FTC has accused Meta of acting as a monopoly in personal social networking with its acquisitions of Instagram and WhatsApp.

Mosseri testified that the company has "invested hundreds of millions, maybe a billion or two, over the course of my tenure" on creators.

Mosseri said the money included both incentives as well as the physical infrastructure that makes it possible for the app to expand a creator's reach.

In 2018, Mosseri took over as head of Instagram after the app's original cofounders stepped down from the company. Since then, creators have gradually become more and more of a core focus for the Meta-owned company.

Instagram has launched (and shut down) a handful of creator monetization programs since 2020 to compete with other platforms like YouTube and TikTok, which also pay creators. Some programs, like Instagram's "Bonuses," that pay creators for content like reels or photos, are limited and invite-only. Earlier this year, Meta had offered some creators between $2,500 to $50,000 a month to post content to Instagram.

"We believe creators are becoming more and more relevant over time," Mosseri said at another point during his testimony. "We are just seeing more and more power shift from institutions to individuals across the industry."