Reka AI, an AI video app developer, has acquired video generation AI model startup Moonvalley through an all-share exchange. The Information, citing two people familiar with the matter, reported that Toronto-based Moonvalley was founded in 2023 and offers video generation models trained on licensed data to avoid copyright infringement. Reka AI plans to use the acquisition to expand into world models and robotics, it said.

Parallel Web Systems, an AI agent tools startup founded by former Twitter CEO Parag Agrawal, has raised $100 million in a Sequoia-led Series B round, TechCrunch reported on April 29. The company was valued at $2 billion in the deal. Existing investors including Kleiner Perkins, Index Ventures, Khosla Ventures, First Round Capital, Spark Capital and Terrain Capital also joined the round.