Arcade, The World’s First AI Product Marketplace, Announces Funding

“With a vision of ‘turning your thoughts into things,’ Arcade is using AI to turn the ‘art to artist’ concept into reality. Being able to turn ideas into reality with just a few words or an image. Whether it’s a custom piece of jewelry, a unique home decor item, or even something entirely new, Arcade empowers users to create, personalize, and own one-of-a-kind products in a way that was never before possible. 

Create, Customize, Own

The first AI product marketplace in the world, Arcade, allows users to create, buy, and sell custom, manufacturable products especially jewelleries, simply by using a text prompt. It blends the limitless possibilities of generative AI with the skilled hands of artisans from around the globe.

In spite of being a fairly new player in the e-commerce field, it’s firmly backed by Karlie Kloss, Christy Turlington Burns, and Colin Kaepernick enabling users to transform their ideas into physical products.

As the founder Minted founder Mariam Naficy once mentioned in an interview, “We are helping consumers communicate with the maker by image.” That’s where AI plays a vital role, it helps the buyer create an expression of the product, which then the “maker” – an artisan, brand or manufacturer around the world brings to life.

Using Arcade’s proprietary AI model, creating personalized products becomes simple and fun. With the Variations tool, users can refine their design by generating multiple versions and choosing the one you like best. The Magic Editor lets one draw or write their ideas, and the AI instantly brings them to life, fine-tuning them based on user input. 

It’s a creative, collaborative process that gives the buyer full control over their designs, with technology helping turn them into reality.

AI-powered design, crafted by artisans

But this is just not restricted to the buyers, even jewelry makers and sellers can leverage AI on Arcade’s platform to enhance their craftsmanship that tells about their unique style, capabilities and capacities.  

With all the creative freedom Arcade offers, concerns about trademark infringement have come up. The founder has reassured that they’ve put measures in place to prevent this. The platform actively blocks trademarked names and logos in both text and images, ensuring designs stay original and don’t violate any copyrights. It’s all about giving users the freedom to create while respecting intellectual property.

According to Naficy, the AI model is trained never to copy a design exactly as it is shown in the uploaded image

Right after Arcade was launched, it raised a total of $17M in funding. This includes two rounds of investment: an initial $5 million co-led by Reid Hoffman and Brit Morin of Offline Ventures with participation from Heretic Ventures, followed by an additional $5 million round led by Ashton Kutcher of Sound Ventures.

Praising the newest launch, Reid Hoffman said, “Mariam has a track record of building creator marketplaces that consumers love – and by using its distinctive AI technologies, Arcade will reinvent human expression as we know it.”

Tangible creations

Just within a few months of launching, Arcade has started bringing newer products and one such would be a new feature called “Match My Room,” enabling users to upload photos of their rooms to design custom rugs that complement their existing decor. 

This tool utilizes AI technologies like Midjourney and Stable Diffusion, allowing users to select materials and input design prompts to create personalized rugs. Prices for these hand-tufted wool rugs start at approximately $400, with higher-end materials available at increased prices. 

This expansion into home goods marks a significant shift from Arcade’s initial focus on jewelry design, showcasing the platform’s versatility and commitment to redefining home decor through AI-driven design.

But this is just not it, along with product launches, the company has announced its $25 million Series A funding round. Based on a TechCrunch report, the newly acquired capital will be used for recruitment, platform enhancement, and the introduction of novel product lines, specifically ceramics and pillows.

In one of her previous interviews, the founder, Naficy, with a proven track record of intersecting technology, design and arts have shared her plans for Arcade. To incorporate additional social features, such as enabling sellers to express gratitude to buyers and facilitating chat among community members. Arcade may also introduce competitions where the most popular design, as determined by votes, earns the designer free jewelry.As actor and Arcade investor Aston Kutcher mentioned, “Arcade gives people the power to manifest what they dream,”