Alphabet and Meta in talks with Hollywood for AI collaboration
What's the story
Alphabet and Meta, two leading technology companies, are reportedly in negotiations with major Hollywood studios.
The discussions revolve around licensing content for their artificial intelligence (AI) video generation software, according to Bloomberg.
The proposed partnerships could be worth tens of millions of dollars, as both companies are working on technology capable of generating realistic scenes from text prompts.
Microsoft-backed OpenAI is also having similar conversations on content usage for AI training.
Cost efficiency
Hollywood studios eye AI to cut costs, retain control
Hollywood studios are keen on leveraging AI technology to reduce costs without compromising their content's integrity.
However, they are wary of providing their films and TV shows to tech firms without maintaining control over the content usage.
This concern was underscored when actor Scarlett Johansson objected to OpenAI using a voice similar to hers for its chatbot, after she declined a collaboration offer.
Financial impact
Significant financial implications of partnerships
The financial implications of these potential partnerships are substantial.
News Corp, the parent company of The Wall Street Journal, recently agreed to let OpenAI use content from over a dozen of its publications, in a deal possibly worth more than $250 million over five years.
Warner Bros Discovery has also shown interest in licensing some of its programs for AI model training, albeit only for specific divisions and not its entire library.
AI adoption
AI already making waves in Hollywood production
AI is already being utilized in Hollywood production.
Filmmaker Tyler Perry has used AI technology to replicate his Madea character's makeup in movies, while director Robert Zemeckis has employed AI to make Tom Hanks appear younger in an upcoming film.
New tools like OpenAI's Sora and Alphabet's Veo offer even more advanced capabilities, enabling filmmakers to create hyper-realistic clips from brief text descriptions.
Labor concerns
Impact on labor sparks concern
The advancements in AI have stirred both excitement and concern in Hollywood, particularly following last year's prolonged strike by actors and writers worried about job losses due to AI.
Perry, impressed by a Sora demonstration, paused plans for an $800 million studio expansion earlier this year.
Despite recognizing the opportunities AI presents for studios, Perry expressed concerns about its impact on labor and called for industry-wide regulations, stating, "If not, I just don't see how we survive."
Music rights
Music industry takes hard line against AI use
The music industry has taken a firm stance against AI usage.
Universal Music Group NV sued Anthropic for copying lyrics and temporarily withdrew its music from TikTok to secure protections for its artists.
Sony Music Group also issued warnings to hundreds of partners against training any AI models on its music this month.
Despite fears that many AI models may already be trained on copyrighted material, no major studio is yet to sue a tech company over AI use.