SandAI raises over $100M across two rounds for open-source AI video
What's the deal? Chinese AI video generation startup SandAI has closed a new funding round, bringing its total raised to over $100 million across two rounds in three months.
The deal drew a roster of top-tier backers, including Baidu VenturesDealroom has a profile for this one. Try Dealroom →, Capital TodayDealroom has a profile for this one. Try Dealroom →, IDGDealroom has a profile for this one. Try Dealroom →, Matrix Partners China, Sinovation Ventures, Source Code Capital, and Kuaishou founder Su Hua.
Why now? SandAI plans to open-source a new-generation video generation model in the third quarter of 2026.
The model uses a mixture-of-experts (MoE) architecture, balancing efficient inference with what the company calls the largest parameter scale in the open-source field.
Founder and chief executive officer Cao Yue said he is confident the model can reach top-tier quality — and that he intends to make it freely available to everyone.
What could go wrong? Open-sourcing a flagship model hands rivals a head start, and SandAI faces fierce competition in a crowded video generation market.
Delivering top-tier quality at the largest open parameter scale is a steep technical bar, and the third-quarter timeline leaves little room to slip.
The signal: The round pulls together a deep bench of Chinese venture heavyweights — from investment funds like Capital Today, Matrix Partners China, and Sinovation Ventures to corporate backers such as Baidu Ventures and IDG — signalling strong institutional conviction in SandAI's open-source bet. That breadth of capital, alongside the early-stage growth profile typical of the space, underscores how investors are racing to position around China's AI video generation contenders.
Read more: Jiemian
