Funding & Business
Meta is partnering with Midjourney and will license its technology for ‘future models and products’

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Even three years after its debut, with ever increasing competition in the AI image generation space, Midjourney, the boostrapped San Francisco startup, remains the “gold standard” for its 20 million users — including us here at VentureBeat, where we use it to generate the “header” art to many of our articles.
Apparently, the leaders of Facebook and Instagram parent company Meta feel similarly.
Today, Alexandr Wang, the former Scale AI founder and CEO who has become Meta’s Chief AI Officer and head of the company’s newly formed Meta Superintelligence Labs (MSL), announced a partnership with Midjourney — believed to be the first of its kind for the independent AI image startup.
Meta will “license their aesthetic technology for our future models and products, bringing beauty to billions,” Wang wrote on X, a rival social network to Meta’s own Threads and Facebook.
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Midjourney had previously reportedly been in discussions with Elon Musk and xAI for some integration with the latter company’s Grok image generation capabilities, but xAI debuted Grok image generation powered by startup Black Forest Labs’ Flux AI image model initially, and now appears to have native image generation capabilities.
Wang framed the move as part of a bigger philosophy—Meta’s “all-of-the-above” approach to building advanced AI.
That means recruiting top research talent, pouring billions into computing infrastructure, and, in this case, teaming up with a company whose work complements Meta’s in ways it can’t easily build on its own.
Midjourney, Wang said, has achieved “true feats of technical and aesthetic excellence,” and Meta is eager to put that expertise to work.
For Midjourney, the partnership is an opportunity to see its technology woven into one of the largest digital ecosystems on the planet.
But in his own X post, Midjourney founder David Holz was quick to stress what isn’t changing: the lab’s independence.
He reminded followers that Midjourney remains community-backed, has no outside investors, and is still pursuing an ambitious slate of projects aimed at shaping what he calls more “humane futures.”
On paper, the tie-up makes sense. Meta brings scale, distribution, and staggering compute power. Midjourney brings a creative edge, honed through years of training models to generate imagery that resonates with actual human tastes. It’s a marriage of brute force and design flair, an alliance that could help Meta’s AI systems feel less utilitarian and more inspired.
Details are lacking: how much $$$ is Midjourney getting from the partnership?
But for now, the details are hazy. Neither company has said how much the deal is worth.
There’s been no statements as to when Midjourney’s technology will start showing up in Meta’s products, or to what degree it will be baked into the company’s AI strategy.
Is this about upgrading the polish of Meta’s widely mocked and recently criticized chatbots — one of which a user allegedly mistook for a real person and died traveling to visit?
Will it be used to enhance Meta’s virtual reality worlds? Or supercharge creative tools across Instagram and Facebook? The answers remain vague for now.
Similarly, a big question concerns what will happen with Midjourney’s stated plans to pursue an external application programming interface (API) for other enterprises to build products and services atop of its powerful image generation models.
Last month, the official Midjourney account on X posted that it was “starting to investigate opening up an Enterprise API for people to start integrating Midjourney into their companies/services,” and provided an Enterprise API application questionnaire for interested parties to fill out.
That application remains online for now, but with Meta inking a deal with Midjourney, the question becomes whether or not is exclusive and will stop plans for a separate Midjourney API in its tracks. I messaged founder Holz and have asked about the API and will update upon receiving a response.
The announcement lands against the backdrop of Meta’s massive internal shake-up. In August, the company reorganized its AI operations, creating Meta Superintelligence Labs, with Wang — who joined after Meta’s $14.3 billion investment in Scale AI — at the helm.
The reorg split AI work into four core tracks: research, training, product, and infrastructure, as Business Insider reported initially.
Wang now oversees an elite bench of talent recruited from OpenAI, Anthropic, Google DeepMind, and beyond — recruited for eye-watering pay packages in the multi-hundred million dollar range — now tasked with pushing Meta toward its stated goal: personalized artificial superintelligence for each user.
It’s an ambitious mission, and a controversial one. Some researchers inside Meta are reportedly uneasy about the pace and scope of the changes. Others see Wang’s rapid consolidation of power as both necessary and risky. What’s clear is that Meta is betting heavily on AI as its future, and the Midjourney deal is one more sign of just how expansive that bet has become.
For Midjourney, aligning with Meta carries its own risks. Independence is central to its identity, and some in its community may worry that partnering with a tech giant could dilute that ethos.
Holz’s messaging suggests he knows this, which may explain why he emphasized Midjourney’s continued autonomy in the same breath as announcing the deal.
What happens next will depend on how the partnership translates from announcement to execution.
For now, the only certainty is that the ever-changing AI product landscape just took another big twist — and we’re all along for the ride.
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Funding & Business
Fed Independence Highlighted by Miran Ahead of Hearing

Federal Reserve Board of Governors Nominee Stephen Miran says if he is confirmed he intends to preserve the independence of the FOMC, according to prepared remarks released by the Senate Banking Committee ahead of Miran’s hearing Thursday. Tyler Kendall reports on Bloomberg Television.
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Funding & Business
WHO to Speak on Suspected Hemorrhagic Fever Outbreak in DRC

The World Health Organization in Africa will hold a briefing on Thursday to give an update on the outbreak of a suspected viral hemorrhagic fever in Kasai Province in the Democratic Republic of Congo.
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Funding & Business
Global Startup Funding In August Fell To Lowest Monthly Total In 8 Years As Seed And Late-Stage Investors Retreated

Global venture funding in August fell to the lowest monthly amount since 2017, Crunchbase data shows. Startup funding last month totaled $17 billion — down 12% from a year ago and a massive 44% drop month over month.
The slowdown marks a respite from the frenzied pace of venture investment in the first half of 2025 — especially for fast-growing AI companies — when startup funding increased by more than a third year over year.
Summer pullback
Since 2023, we’ve seen a noticeable summer pullback in either July or August, when global venture funding typically dips below $20 billion.
It’s typical for late-stage funding to lag in these slower months. Less typically, there was also a significant pullback at the seed stage last month, when funding at that phase nearly halved compared to July and fell a third from a year ago.
Late-stage funding declined more than 50% compared to July and fell by a fifth year over year, Crunchbase data shows.
Early-stage funding also declined month over month, but to a lesser degree, and increased slightly from a year ago. Relative to past months, Series B rounds held up by both counts and amounts.
Series B active
The two largest funding deals last month were Series B rounds to deep tech and AI startups, both based outside of the Bay Area. The largest round went to Cambridge, Massachusetts-based Commonwealth Fusion, a fusion energy company that raised $863 million. The second-largest was Colorado-based quantum computing Quantinuum’s $593.8 million raise.
The third-largest round was a tie between Toronto, Canada-based AI lab Cohere’s $500 million Series D and San Francisco-based coding startup Cognition’s $500 million Series C at a $9.8 billion valuation following its earlier acquisition of Windsurf.
US funding dominated
Funding to U.S.-based startups last month totaled $10.4 billion, or 61% of venture investment, per Crunchbase data.
Funding to startups headquartered in the U.S. has increased significantly year to date in 2025 to 68% of global venture capital, thanks to billion-dollar-plus funding deals for American AI companies.
AI led global startup funding again last month, totaling $4.8 billion. Healthcare and biotech followed, with startups in the sector raising $4 billion globally in August, per Crunchbase data, and more than $2 billion each went to startups in the financial services and energy sectors.
Looking forward
Despite the August funding slowdown, there are some positive signs for the startup world to look forward to, notably the reopening of the IPO markets. A more robust exit market will provide some much-needed liquidity to venture capital firms, which could in turn help reopen the funding spigot.
Methodology
The data contained in this report comes directly from Crunchbase, and is based on reported data. Data reported is as of Sept. 3, 2025.
Note that data lags are most pronounced at the earliest stages of venture activity, with seed funding amounts increasing significantly after the end of a quarter/year.
Please note that all funding values are given in U.S. dollars unless otherwise noted. Crunchbase converts foreign currencies to U.S. dollars at the prevailing spot rate from the date funding rounds, acquisitions, IPOs and other financial events are reported. Even if those events were added to Crunchbase long after the event was announced, foreign currency transactions are converted at the historic spot price.
Glossary of funding terms
Seed and angel consists of seed, pre-seed and angel rounds. Crunchbase also includes venture rounds of unknown series, equity crowdfunding and convertible notes at $3 million (USD or as-converted USD equivalent) or less.
Early-stage consists of Series A and Series B rounds, as well as other round types. Crunchbase includes venture rounds of unknown series, corporate venture and other rounds above $3 million, and those less than or equal to $15 million.
Late-stage consists of Series C, Series D, Series E and later-lettered venture rounds following the “Series [Letter]” naming convention. Also included are venture rounds of unknown series, corporate venture and other rounds above $15 million. Corporate rounds are only included if a company has raised an equity funding at seed through a venture series funding round.
Technology growth is a private-equity round raised by a company that has previously raised a “venture” round. (So basically, any round from the previously defined stages.)
Related reading:
Illustration: Dom Guzman
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