Flam has raised $40 million in Series B funding led by QED Investors as the AI startup bets that interactive content could become the next major format for digital experiences. The company is targeting enterprise applications spanning marketing, product visualization, training, entertainment and customer engagement, combining generative AI models with real-time video, 3D content and conversational AI agents.
The new financing gives Flam additional capital to develop its AI models, expand its product portfolio and grow enterprise sales globally. Claypond Capital, Martin Chavez, Olivier Pomel, Venky Harinarayan and Shah Rukh Khan also participated, while existing investors RTP Global and Dovetail increased their investments.
Flam says it has signed more than 100 enterprise customers across six quarters, including Google, State Farm and Diageo. Customers are using the platform for applications ranging from marketing and product visualization to learning and development, entertainment, fan engagement, customer support and sales.
The company is pitching a broader change in how digital content works. Instead of presenting audiences with static pages, images or linear video, Flam wants businesses to create experiences that respond to user input in real time.
That puts the company at the intersection of several fast-growing areas of artificial intelligence: generative media, AI agents, computer vision, real-time 3D and large language models.
Flam currently organizes its platform around three formats: Flicks, Airboards and Visual Agents.
Flicks are interactive videos designed to change a person, product or scene while playback is underway. Flam says its compression technology enables programmatic delivery with a 50-millisecond time-to-first-buffer. Its Forge editing model is designed to modify a specified element of an image while preserving the rest of the reference.
Airboards take the concept into 3D. The company describes them as high-fidelity 3D experiences that run through a camera interface and support touch, voice and haptic interactions. Flam says its 3D streaming technology can load these experiences in about 300 milliseconds without requiring an app installation.
Behind that format is Fable, an image-to-video model that generates assets as native alpha-channel video. This gives Flam a model-driven approach to producing visual assets rather than relying exclusively on conventional 3D production workflows.
The company’s third format, Visual Agents, is perhaps the most strategically significant. These are human-like digital characters designed to converse with users and take actions. Flam describes the experience as closer to a video call than a conventional chatbot.
The technology stack combines several specialized systems. Fantom handles facial expression, identity preservation and motion transfer, while Finesse provides multilingual voice capabilities. Falcon, a 26-billion-parameter mixture-of-experts large language model, is used for response generation. Flam claims Falcon reaches a 30-millisecond time-to-first-token and that the complete Visual Agent pipeline can return an answer in less than two seconds.
Those performance figures are company-reported and have not been independently benchmarked in the material available for this announcement.
The funding arrives as businesses move beyond basic generative AI experiments toward more embedded AI applications. McKinsey reported that 88% of organizations surveyed in 2025 were using AI in at least one business function, up from 72% in 2024. Yet only 7% said AI had been fully scaled across their organizations, highlighting the gap between experimentation and operational deployment.
That gap creates an opportunity for platforms that package AI capabilities into enterprise-ready applications rather than requiring companies to assemble models and infrastructure themselves.
The broader market is also attracting substantial spending. Gartner forecast worldwide generative AI spending of $644 billion in 2025, up 76.4% from 2024. Much of that spending is going toward hardware, but the forecast illustrates the scale of investment flowing into the wider generative AI ecosystem.
Flam’s strategy differs from companies focused primarily on generating images or video. It is attempting to own the interaction layer around those assets. That could put it in competition, directly or indirectly, with generative media platforms, digital experience providers, 3D technologies and AI agent companies.
Large technology companies are pursuing adjacent opportunities. Adobe is embedding generative AI into creative and marketing workflows, while NVIDIA provides much of the underlying compute infrastructure used to train and run generative models. Google, Microsoft and Amazon are similarly incorporating generative AI and agents into enterprise software and cloud platforms.
Flam’s differentiation will therefore depend less on whether AI can generate media and more on whether its infrastructure can make interactive experiences reliable, fast and economical enough for large enterprises.
The company’s more than 15 patents and growing enterprise customer base are intended to provide that foundation. QED Investors’ investment thesis centers on the idea that interactive content represents an underdeveloped category rather than simply another improvement to existing media formats.
For Flam, the Series B is ultimately a bet that the next generation of digital content will not simply be generated by AI but will respond to the audience. If that model gains traction, interactive video, real-time 3D and conversational visual agents could become another layer of enterprise digital infrastructure.
Market Landscape
Flam is entering a generative AI market that is shifting from content creation toward complete interactive experiences. Gartner forecasts $644 billion in worldwide generative AI spending for 2025, while McKinsey reports that 88% of organizations were using AI in at least one business function by 2025.
The competitive landscape includes creative AI platforms, cloud providers, enterprise software companies and infrastructure vendors. Adobe is targeting AI-powered creative workflows, while NVIDIA, Microsoft, Google and Amazon provide models, infrastructure and developer platforms supporting enterprise AI applications.
Flam’s positioning is narrower: it is attempting to combine generative media with real-time interaction, 3D streaming and autonomous conversational experiences in one enterprise platform.
Top Insights
- Flam is betting that interactive AI content can become a new enterprise media format spanning video, 3D experiences and conversational agents.
- Its platform combines specialized AI models with real-time delivery infrastructure rather than focusing solely on content generation.
- More than 100 enterprise customers provide early commercial traction, although Flam has not disclosed revenue or customer-level spending.
- Visual Agents extend the company’s strategy from interactive media into AI-powered customer engagement and agentic applications.
- The $40 million Series B will fund AI research, product expansion and global enterprise sales.
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