QED Investors led a new investment round for Flam to accelerate the development of its machine learning models. The $40 million Series B funding, which included participation from Datadog CEO Olivier Pomel, Martin Chavez, and Venky Harinarayan, targets the growth of global enterprise sales. This capital also finances the expansion of the company's product suite and research efforts to scale its interactive AI tools.

Flam creates interactive media that responds to user taps, voice, or camera prompts in real-time. Its "Flicks" format allows video scene switching in under 10ms with a 50ms time-to-first-buffer, while "Airboards" stream 3D augmented reality into a phone camera in 300ms without an app installation. The startup's lineup also includes "Visual Agents," on-screen characters capable of live conversations with response cycles under 2 seconds.