Luma AI Raises $900M at $4B Valuation as CEO Claims Ray3 Model Beats OpenAI's Sora

Nov 20, 2025
The Economic Times
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Summary

Luma AI secures $900 million in funding at a $4 billion valuation, with CEO Amit Jain claiming their Ray3 reasoning model outperforms OpenAI's Sora as the visual content generation startup plans to build a massive 2-gigawatt compute cluster and expand aggressively into India and emerging markets.

Key Points

  • Luma AI raises $900 million in funding led by Saudi-based Humain public investment fund, with the company now valued at $4 billion
  • The visual content generation startup plans to use the capital to develop advanced AI systems and build a 2-gigawatt compute cluster for model training
  • CEO Amit Jain states the company's Ray3 reasoning model outperforms OpenAI's Sora on multiple benchmarks and plans aggressive expansion into India and emerging markets

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