Arcade, the innovative generative AI platform renowned for its jewelry design capabilities, is broadening its horizons to the world of home goods—starting with rugs. This expansion marks a significant step forward in Arcade’s mission to revolutionize digital design and bring AI-driven creativity to more consumer markets.
Introducing ‘Match My Room’: AI-Powered Personalized Design
As part of its foray into home decor, Arcade has unveiled a groundbreaking feature called “Match My Room.” This tool allows users to upload a photo of their living space, enabling the AI to generate rug designs that harmonize with the room’s existing colors and style. While the AI excels at color matching, it currently doesn’t replicate intricate patterns from surrounding decor elements like pillows or blankets. Nevertheless, it provides a seamless way for users to ensure their rug selection complements their furniture and overall aesthetic.
Bridging AI Design with Manufacturing
Similar to how Arcade’s jewelry design tool operates, its new rug creation feature is powered by advanced AI models like Midjourney and Stable Diffusion. Users can select their preferred rug material and enter a text prompt describing their desired design. The AI then generates a custom rug concept, which is subsequently matched with a manufacturer. Before finalizing a purchase, customers receive a free sample of their rug to ensure satisfaction with the design and material.
Pricing for Arcade’s rugs starts at approximately $400 for a 3×9 hand-tufted wool option, with costs rising for premium materials such as cashmere, alpaca, and mohair. While luxury rug retailers often charge thousands of dollars, Arcade positions itself as a more affordable alternative without compromising on quality.
Arcade Secures $25 Million in Series A Funding
Alongside its product expansion, Arcade has successfully closed a $25 million Series A funding round, bringing its total funding to $42 million. The round was led by Laura Chau of Canaan Partners, with participation from prominent investors including Kirsten Green of Forerunner. This capital infusion will be directed toward platform development, hiring talent, and launching new product categories such as ceramics and pillows. Additionally, Arcade has hinted at future expansions into apparel, leather goods, and even chain belts.
Arcade’s growth trajectory has been rapid. Despite launching its jewelry design beta in September 2024, the platform has already generated an impressive 650,000 jewelry designs. However, while these numbers highlight the platform’s popularity, Arcade has yet to disclose data on how many designs have been purchased or the earnings of its seller community.
Empowering Designers and Entrepreneurs
For those looking to leverage AI for creative expression and business opportunities, Arcade offers several monetization programs. The company’s seller program allows users to earn a 5% commission on product sales, up from the previous 2.5% rate. Additionally, an affiliate program enables participants to maximize earnings through referrals.
In a bid to support content creators and influencers, Arcade has launched an exclusive entrepreneur program. Major media outlets and social media influencers with 25,000+ followers are encouraged to participate, unlocking higher commission rates and greater earning potential. Interested individuals can apply by reaching out to Arcade’s marketing team.
A Vision for the Future of AI-Driven Design
Arcade’s founder, Mariam Naficy, is no stranger to pioneering digital marketplaces. Having previously founded the cosmetics retailer Eve and the design marketplace Minted, Naficy brings a wealth of experience to this latest venture. With a growing investor roster that includes Ashton Kutcher’s Sound Ventures, Offline Ventures, and LinkedIn co-founder Reid Hoffman, Arcade is well-positioned to redefine how AI-driven design intersects with consumer products.
As Arcade continues to evolve, its expansion into home goods signals an exciting new chapter in generative AI’s role in creative commerce. With future plans to introduce additional product categories and enhance user experience, the platform is poised to remain at the forefront of AI-powered customization and innovation.
