Stealth AI Startup Recraft Beats DALL-E and Midjourney, Raises $30M

Recraft’s AI model outperforms DALL-E and Midjourney, raising $30M to redefine brand-focused image generation. Learn what sets them apart.
Matilda
Stealth AI Startup Recraft Beats DALL-E and Midjourney, Raises $30M
If you're wondering which AI model just beat DALL-E and Midjourney on a major benchmark, the answer is Recraft’s powerful and stealthy image generator. Recraft, a rising AI startup based in San Francisco, recently shocked the tech world when its proprietary model, codenamed “red_panda,” outperformed leading AI giants on the respected Artificial Analysis benchmark. As a result of this breakthrough, Recraft successfully closed a $30 million Series B funding round, led by top venture capital firm Accel, with participation from Khosla Ventures and Madrona. This momentum places Recraft among the fastest-growing AI companies of 2025, boasting over 4 million users and surpassing $5 million in annual recurring revenue (ARR).                  Image Credits:Refract Founded by solo female entrepreneur and machine learning expert Anna Veronika Dorogush, Recraft distinguishes itself by building image generation models from scratch — no fine-tuning or licensing from other projects. Competing dire…