Sand.ai, a Beijing-based AI video generation startup, raised US$200 million in a Series A+ round. CoStone Capital and Wangsu Science & Technology jointly led the financing. The company builds generative video models and a paid video creation service called VidMuse.
Funding so far
Pudong Venture Capital Group and an investment arm of Shanghai International Group also joined the round. Existing investors iMPC, CAS Star, and HyT Capital added to their positions. The financing was Sand.ai's third in 2026 and lifted its 10-month total fundraising to US$300 million.
Company background
Sand.ai was founded in early 2024 by Cao Yue, who holds a PhD from Tsinghua University. The company has offices in Beijing and Shanghai. Cao previously co-founded Light Year, which Meituan acquired in June 2023 for US$281 million.
Products and customers
The company has released models such as Magi-1, GAGA-1, and the open-source MAGI-2 Preview. Its VidMuse product supports music videos, product ads, and anime dramas. The company said VidMuse surpassed US$10 million in annual recurring revenue within two months of its January launch.
Sand.ai will direct the new capital toward video foundation model research, training, and inference infrastructure. It also plans to fund product iteration and global market expansion. The official version of MAGI-2 is expected in the near term.