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Europe’s AI Pioneer Raises $13M to Build the Future of Interactive 3D Worlds

SpAItial, led by AI pioneer Matthias Niessner, raises $13M to create interactive 3D worlds from text prompts. Is this Pfeiffer, the future of gaming and beyond?

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By MoneyOval Bureau

3 min read

Matthias Niessner with Synthesia founders.
Matthias Niessner with Synthesia founders.

MUNICH, May 27, 2025 — Matthias Niessner, one of Europe’s leading AI researchers in 3D modeling, has launched SpAItial, a startup aimed at creating photorealistic, interactive 3D environments from text prompts, securing a remarkable $13 million seed round. Niessner, who took an entrepreneurial leave from the Technical University of Munich, previously co-founded Synthesia, now valued at $2.1 billion. The funding, led by Earlybird Venture Capital with participation from Speedinvest and notable angels, underscores the high stakes in developing AI foundation models that could revolutionize industries from gaming to robotics.

SpAItial’s Vision for the ‘Holy Grail’ of 3D Models

SpAItial’s mission is to go beyond static 3D generation, focusing on fully interactive environments where objects behave realistically—think a glass shattering in a virtual space. Niessner envisions a future where a child could type a prompt and create a video game in minutes, a goal he calls the “Holy Grail” of AI-driven 3D modeling. The startup’s teaser video, recently released, demonstrates early capabilities by generating a 3D room from a text prompt. Despite competition from Odyssey and Fei-Fei Li’s World Labs (valued at over $1 billion), Niessner believes the space remains wide open, especially for applications requiring interactivity.

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A Powerhouse Team to Tackle the Challenge

Niessner has assembled a formidable team, including Ricardo Martin-Brualla, a former Google researcher on 3D teleconferencing, and David Novotny, who led Meta’s text-to-3D asset generation for six years. On the business side, Luke Rogers, a former Cazoo executive and Niessner’s ex-roommate from Stanford, joins as a co-founder to navigate commercialization. The team plans to prioritize quality over quantity in hiring, focusing on compute resources and strategic partnerships to refine their models. Recent industry trends show the 3D modeling market growing at a 15% annual rate, driven by demand in gaming, AR, and digital twins, signaling strong potential for SpAItial’s ambitions.

Did You Know?
The global 3D modeling market is projected to reach $10 billion by 2028, fueled by advancements in AI and increasing demand for immersive digital experiences.

Potential Applications and Go-to-Market Strategy

The startup sees a “trillion-dollar” opportunity spanning video games, entertainment, construction visualizations, and robotic training. SpAItial aims to license its foundation model to developers, allowing them to create tailored applications. Niessner emphasized collaboration with early partners to test APIs, balancing immediate use cases with long-term quality improvements. While revenue generation is a priority, the company will first invest in compute and talent to scale its technology, potentially positioning itself as a CAD replacement or a competitor to platforms like Roblox in the future.

Challenges Ahead in a Competitive Landscape

SpAItial faces hurdles, including competition from well-funded startups and the technical complexity of achieving fully interactable 3D worlds. The gaming industry, a key target, remains tightly controlled by platforms wary of third-party integrations. However, Niessner’s track record and the team’s expertise give SpAItial a strong foundation to innovate in a nascent but rapidly evolving field, with online discussions reflecting growing excitement for AI-driven 3D creation tools.

What industry will benefit most from AI-generated 3D environments?

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