Arcade, a generative AI marketplace known for jewelry design, is diversifying its offerings to include home goods, starting with rugs. The new 'Match My Room' feature allows users to upload photos for tailored rug designs. The company has also secured $25 million in Series A funding, raising its total to $42 million. Users can create rug designs using AI tools and receive samples before purchasing. Arcade's commission structure for sellers has improved, and new programs are aimed at increasing earnings for content creators. Future product categories may include ceramics and apparel.