Arcade expands from jewelry to home goods with new “Match My Room” feature. Arcade AI is a leading generative AI marketplace known for revolutionizing jewelry design.he company has introduced AI-powered rug customization, allowing users to design rugs that match their interior aesthetics. With this move, Arcade AI is making waves in the home decor industry, giving consumers a unique way to personalize their living spaces.
Alongside this expansion, Arcade has rolled out an innovative feature called “Match My Room.” This tool enables users to upload a photo of their room, helping the AI generate rug designs that complement the space’s existing colors and style. The feature ensures that buyers can find the perfect rug without second-guessing color coordination.
Arcade AI’s rapid growth has caught the attention of investors, as the company has successfully raised a $25 million Series A funding round, bringing its total funding to $42 million. The latest round was led by Canaan Partners’ Laura Chau, with contributions from notable investors such as Forerunner’s Kirsten Green. The company plans to use this capital to expand its platform, hire new talent, and introduce more product categories like ceramics and pillows.
AI-Powered Rug Design and Customization
Just as Arcade revolutionized jewelry design, it is now applying generative AI to home goods, starting with rugs. The company’s rug customization tool utilizes cutting-edge AI models, including Midjourney and Stable Diffusion, to create unique designs.
Users can personalize their rugs by selecting their preferred material—ranging from hand-tufted wool to high-end options like cashmere, alpaca, and mohair. They then input a text prompt describing their desired design. Once the AI generates the rug concept, Arcade AI pairs it with a manufacturer who provides a free sample for approval before the final purchase.
Initial pricing for Arcade AI’s rugs starts at $400 for a 3×9 hand-tufted wool option, making it a competitive alternative to luxury rug retailers that charge thousands of dollars for similar custom pieces. While premium materials drive up costs, the platform aims to offer more affordable options for customers looking to elevate their home decor.
The “Match My Room” Feature: AI-Powered Color Coordination
Arcade AI’s new “Match My Room” feature simplifies the shopping process by ensuring that rugs harmonize with a room’s existing decor. By uploading a photo of their space, users allow the AI to analyze the dominant colors and suggest designs that complement them.
Although the AI tool excels in color matching, it currently lacks the capability to replicate intricate patterns from other decor elements like pillows or blankets. However, it remains a valuable tool for homeowners and interior designers seeking seamless aesthetics in their spaces.
Arcade AI Expands Its Ecosystem for Sellers and Creators
Beyond offering AI-driven product customization, Arcade AI is enhancing opportunities for creators and entrepreneurs. The platform’s seller program now allows users to earn a 5% commission on sales, doubling its previous rate of 2.5%. Additionally, Arcade AI has launched an affiliate program where content creators can further boost their earnings.
For influencers and major media outlets, Arcade has introduced a new entrepreneur program that provides higher commission rates. Content creators with 25,000+ followers are encouraged to join by reaching out to Arcade’s marketing team.
A Look at Arcade AI’s Growth and Future Plans
Since launching its beta jewelry platform in September 2024, Arcade has reportedly generated 650,000 jewelry designs. However, the company has not disclosed how many users have purchased these designs or how much sellers have earned in commissions.
Arcade AI is spearheaded by Mariam Naficy, the entrepreneur behind Minted and cosmetics retailer Eve. The company previously secured $17 million in funding from investors including Ashton Kutcher (Sound Ventures), Offline Ventures, and LinkedIn co-founder Reid Hoffman. Other backers include Inspired Capital, Torch Capital, and David Luan, CEO of Adept AI Labs and former VP of engineering at OpenAI.
Looking ahead, Arcade is planning to expand its product categories even further. In addition to rugs and ceramics, potential future offerings may include apparel, leather goods, and chain belts, according to its website.
With its cutting-edge AI tools, growing investor support, and a commitment to affordable luxury, Arcade AI is positioning itself as a major player in the AI-powered home decor and custom design industry.
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