PaletteAI raises $42M Series B to scale studio-grade generative tools

AI · 5 min read

PaletteAI announced a $42 million Series B led by Orion Ridge with participation from Blue Harbor and a group of strategic studio partners. The company says the fresh capital will fund R&D, hire senior ML engineers, and scale a new private-cloud offering targeted at studios that need on-prem privacy controls.

The startup’s flagship product combines multimodal generative models for high-resolution texture synthesis, style transfer, and animation keyframe interpolation. PaletteAI claims its hybrid architecture keeps training and sensitive fine-tuning on local hardware while offloading non-sensitive inference to its cloud service, addressing studios’ longstanding IP concerns.

Early customers include two mid-size VFX houses and a fashion brand that used PaletteAI’s toolchain to accelerate look-dev and reduce manual rotoscoping. The company plans a broader rollout of enterprise features—versioned model governance, collaboration layers for artists, and plugin support for major DCCs—later this year.