Rumi, an artificial intelligence media startup, has raised $4.7 million in a pre-seed funding round to support its mission of converting passive media consumption into interactive, AI-powered experiences. The round was co-led by A16z crypto CSX and EV3, reflecting early investor confidence in Rumi’s approach to building a decentralized AI infrastructure for media. The company has launched an invite-only beta version of its app, which allows users to engage with media content in real time and earn rewards for their participation.

AI Startup Rumi Raises Over $4 Million

AI Startup Raises $4.7 Million

With more than five hours spent daily by users watching digital content, Rumi aims to shift the media experience from passive consumption to active interaction. The app introduces features that let users converse with on-screen characters, receive real-time fact checks during live programming, and identify actors and outfits. These interactions are made possible by AI agents trained to understand and augment video content in context.

According to the company, its system enables users to contribute spare compute power, which is used to index video data and enhance the AI’s understanding of stories, characters, and cultural references. In return, users earn passive income, creating what Rumi describes as a “watch-to-earn” model. In an interview with GamesBeat CEO Niko Cunningham stated that Rumi’s infrastructure allows artificial intelligence to become more immersive by developing a deeper understanding of global content and culture, which is necessary for meaningful storytelling enhancements.

Decentralized AI Infrastructure and Data Privacy

Rumi has developed a decentralized blockchain network of indexers who analyze video content and contribute data to AI agents. This approach allows for real-time insights and personalized features such as contextual overlays and interactive recommendations, all while protecting user privacy and respecting content rights. Unlike traditional methods of AI training, Rumi does not store or distribute copyrighted media. Instead, its decentralized protocol uses AI to transcribe and summarize content, exposing only metadata through application programming interfaces (APIs) to external agents.

The company emphasizes that its technology aligns with established legal precedents around fair use. It draws comparisons to cases like Authors Guild v. Google and TVEyes v. Fox, where courts ruled that the transformation of content for indexing or search functions can qualify as fair use. Rumi does not publicly share transcriptions; instead, it provides access to content summaries only when prompted by approved AI agents.

AI Startup Rumi Raises Over $4 Million

Business Model and Early Partnerships

Rumi monetizes its platform through API licensing and data services. It offers contextual awareness capabilities to AI agents, enabling them to provide value-added services such as real-time, conversational advertisements and product recommendations within media experiences. For example, during a cooking show, an agent could suggest recipe cards or provide links to ingredients featured on screen.

The company is also building a “decentralized Nielsen,” a system for real-time analytics and audience insights. Early partnerships include platforms such as Virtuals.io, which integrates Rumi’s APIs to provide contextual interactivity, as well as TVision and Story Protocol, which use Rumi's data for media analysis and audience tracking. These partnerships indicate growing interest in using detailed media engagement data to improve content delivery and viewer experience.

AI Startup Rumi Raises Over $4 Million

Media Contextualization Through AI Models

Unlike other decentralized platforms focused on compute resource sharing, such as Bittensor, Akash, or Render, Rumi focuses specifically on video content understanding. The company has developed proprietary deep learning models capable of analyzing narrative structure, character relationships, and cultural context from video data. Rumi believes this capability is crucial for the next generation of AI, which must go beyond processing documents and instead engage with the kinds of stories and cultural elements that drive human media consumption.

Rumi’s infrastructure is designed to support both on-demand and live content, including sports broadcasts. Over time, the company plans to introduce a direct-to-consumer application that acts as an AI-powered remote control and media companion. This app would allow users to interact with content in real time, deepening engagement and creating new monetization opportunities for content creators and advertisers.

Monetization for Creators and Advertisers

As Rumi collects data on viewer interactions, it enables media companies and creators to better understand what aspects of content resonate with audiences. This information can help improve storytelling and optimize production choices. At the same time, advertisers benefit from the ability to deliver more personalized and context-aware ads that integrate naturally into conversations with AI agents, rather than interrupting the viewing experience.

The company assures that all user data contributions are voluntary and protected under its privacy policies. Participants in Rumi’s ecosystem are rewarded for their involvement, making it attractive to users who are familiar with web3 principles, particularly those accustomed to sharing resources like bandwidth or compute power in exchange for tokens or other forms of compensation.

AI Startup Rumi Raises Over $4 Million

Why the Timing Favors Rumi's Vision

Rumi’s launch comes at a time when demand for interactive, personalized, and immersive media experiences is increasing. Trends such as second-screen usage—especially among younger audiences—highlight the shift toward multitasking and real-time engagement while watching content. Industry research indicates that a significant portion of Gen Z viewers frequently use their phones while watching TV or playing games, underscoring the demand for more connected and engaging entertainment.

The development of consumer-facing AI agents is also gaining traction, with applications in entertainment likely to be the first area of widespread adoption. Rumi’s technology meets this moment by providing tools for AI agents to enhance media experiences in ways that are contextual, relevant, and personalized.

As the company continues to build its infrastructure and expand its beta program, Rumi is positioning itself to become a central player in the evolving intersection of AI, media, and decentralized networks. Early users can sign up to participate in the beta and contribute to the foundation of what Rumi describes as the first intelligent, user-powered media ecosystem by visiting rumilabs.io.