AI Firm Raises $5.5M After Trump Shared Their Gaza Video Creation

Arcana Labs, an AI content production company based in Los Angeles, has secured $5.5 million in funding and launched its AI production studio, Arcana AI. The funding round was led by SEMCAP AI, with the platform gaining attention after one of its AI-generated videos was shared by President Donald Trump on his Truth Social platform. The video, which depicted the Gaza Strip as an upscale beach resort, was created by Israeli developers testing Arcana's tools.

The Israeli creators of the Gaza video stated they made it as a satirical response to Trump's suggestion that the U.S. should take control of Gaza and transform it into the "Riviera of the Middle East." They condemned Trump's sharing of the video without proper context, highlighting how AI-generated content can be repurposed in ways not intended by its creators. The incident demonstrates the growing intersection between AI-generated media and political discourse in the United States.

Arcana Labs, launched in 2023 and led by Millennium Media President Jonathan Yunger, positions itself as a disruptive force in Hollywood amid rising production costs. The company's platform enables artists to generate images and video clips, with capabilities that allow users to switch between various AI models in a single workflow. The technology has already been utilized by producers, directors, visual effects studios, and advertising agencies in Hollywood productions.

The new funding will support technology development, marketing efforts, and the expansion of Arcana Productions, the creative arm of the company. Arcana Labs is also establishing Arcana Academy, an educational initiative aimed at teaching filmmakers how to direct with AI. The company is currently involved in producing what it describes as the first fully AI-created horror movie and is working on a science fiction project featuring SAG actors.