What is Dream Machine: everything you need to know about the AI video generator
How to transform text prompts into realistic videos with AI

Dream Machine is a groundbreaking AI tool that can transform text prompts into realistic videos with natural motion. It allows almost anyone to produce high-quality clips based on natural language inputs.
The latest version of its generative video model, Ray2, is capable of rendering videos with accurate physics and believable details. This unlocks the ability to quickly bring written ideas to life, without any editing or filmmaking know-how.
It’s a powerful tool for content creators and visual storytellers, whether for creative or commercial purposes. With developer Luma AI working on new features, here’s everything you need to know.
This article was correct as of March 2025. AI tools are updated regularly and it is possible that some features have changed since this article was written. Some features may also only be available in certain countries.
What is Dream Machine?
Dream Machine is an AI-powered visualization tool developed by Luma AI. Launched in 2024, it allows you to create both images and videos using text prompts written in natural language. It rapidly gained attention for its ability to render compelling scenes with realistic motion, depth and detail.
Dream Machine uses generative models trained on massive datasets of video content to simulate real-world physics. The latest model is Ray2, which is its most effective to date. It can bring written descriptions to life with impressive attention to detail.
Even with clips capped at 10 seconds, the appeal of Dream Machine is that it allows almost anyone to quickly produce high-quality video content. No coding or editing knowledge is required and the cost is relatively low. This has made it popular with content creators, as well as creatives looking to source B-roll with more flexibility than stock footage.
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What can you use Dream Machine for?
Dream Machine can turn text prompts into still images and full-motion videos. Enter a description of what you want to see using natural language, select the output settings and hit generate: using the Ray2 model, it will transform your words into realistic visuals.
That model is capable of rendering natural motion and accurate physics in resulting video clips. It can also closely adhere to factors specified in prompts. These can include everything from lighting and style to camera angle and shot type. Think establishing, POV or close-up. If you’re not sure where to start with a prompt, Dream Machine can offer suggestions.
The interface also gives you granular control of output. You can specify clip length (5 or 10 seconds), resolution (720p or 1080p) and aspect ratio (9:16, 3:4, 1:1, 4:3, 16:9 or 21:9). This gives you a lot of flexibility to produce clips for different platforms or projects, whether that’s something cinematic or a social Reel.
If you want to build on a plain-text description, you can also upload start and end keyframes for Dream Machine to work with.
What can’t you use Dream Machine for?
Dream Machine can’t be used to create feature-length, high-resolution footage. Even with a paid subscription, generated video clips are capped at 10 seconds, while output resolutions are limited to 1080p.
At present, support for reference images and modification of existing content is available for stills only. Dream Machine can’t be used to edit uploaded video clips.
Use of Dream Machine is also subject to Luma AI’s terms of service. Part of that means you can’t use the tool to breach the intellectual property of others. That means you can’t ask it to generate video clips containing copyrighted characters, for example.
Those terms also specify that users own the rights in generated videos, but commercial use is subject to the plan that they’re on.
How much does Dream Machine cost?
Dream Machine does have a Free plan. This previously allowed users to generate 720p video clips. However, due to high demand and resource limitations, a paid subscription is currently required to generate videos.
The Lite plan costs $9.99 (around £8 / AU$16) per month. It includes 3,200 monthly credits, access to the latest Ray2 model and support for 1080p output resolutions.
Plus is the next tier up, for $29.99 (around £24 / AU$48) per month. It includes 10,000 monthly credits. Clips are generated without watermarks and can be used commercially.
For power users, there’s an Unlimited plan. It costs $94.99 (around £76 / AU$150) a month and includes uncapped use in relaxed mode.
Users can save 30% on all plans by subscribing annually. Luma Labs also offers Enterprise pricing for businesses who want to work with Dream Machine.
Where can you use Dream Machine?
You can access Dream Machine by pointing your browser at its web interface.
There’s no desktop or Android app yet, but iOS users can download the Luma Dream Machine smartphone app from the App Store.
Is Dream Machine any good?
In our hands-on experience with Dream Machine, we found it capable of producing high-quality videos with accurate motion. In a recent test of the latest Ray2 video model, we commented that the physics in rendered scenarios “look shockingly natural”.
We praised its “realistic characters, faster rendering, smoother motion” and also encountered “far fewer glitches” than in previous versions. The interface itself is streamlined, intuitive and relatively easy to use, making text-to-video generation more accessible.
We did note that Dream Machine’s clip time limits make it less useful for creating “longer-form, cohesive video narratives” than OpenAI’s Sora. Even so, Dream Machine is an impressive creative tool.
Use Dream Machine if...
You want to turn your ideas into videos
Dream Machine allows you to describe your ideas using plain language and easily transform them into short video clips. You can also create looping clips and upload start and end keyframes to accompany your prompt.
You want granular clip control
Dream Machine allows you select clip length, resolution and one of six aspect ratios. You can also ask for prompt suggestions, which allow you to specify everything from shot type to camera angle to lighting.
Don't use Dream Machine if...
You want to create longer videos
Paid plans unlock video generation with higher priority and more monthly credits, but individual video clips are still limited to a maximum of 10 seconds. Dream Machine isn’t yet capable of creating feature-length scenes.
You don’t want a paid subscription
Dream Machine does have a free plan but resource limitations mean it doesn’t currently include video generation. To create full-motion clips, you’ll need to take out paid subscription on a monthly or annual basis.
Also consider
- Sora is an AI text-to-video generator from OpenAI, the developers of ChatGPT. It can generate clips up to 20 seconds long, with complex, dynamic visuals, realistic motion and detailed settings. It’s capable of effectively simulating real-world physics.
- Pika describes itself as an “idea-to-video platform”. Powered by AI, it can turn your images and text prompts into realistic video clips. It’s designed for “social-first content”, with clips capped at 10 seconds even on paid plans.
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Formerly News Editor at Stuff, Chris now writes about tech from his tropical office. Sidetracked by sustainable stuff, he’s also keen on cameras, classic cars and any gear that gets better with age.
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