Alphabet Inc. (NASDAQ:GOOG) and Meta Platforms Inc. (NASDAQ:META) are in talks with major Hollywood studios to license content for their AI video generation software. These companies are developing technology to create realistic scenes based on text prompts and have offered substantial sums to partner with the studios.
Peer Microsoft Corp (NASDAQ:MSFT) backed OpenAI is also engaged in similar discussions with Hollywood studios, according to reports from Bloomberg.
Hollywood studios are interested in using AI to cut costs while ensuring that their content is not misused. However, they are proceeding with caution when licensing content, as they want to maintain control over how their work is used.
Scarlett Johansson recently demanded that OpenAI stop using a voice resembling hers for its chatbot, highlighting the sensitivity surrounding the use of AI-generated content.
In a recent development, News Corp (NASDAQ:NWS) (NASDAQ:NWSA) has agreed to let OpenAI use content from its publications in a deal that could be worth over $250 million over the next five years. Warner Bros. Discovery Inc (NASDAQ:WBD) is also open to licensing specific programs but is hesitant to license its entire library.
While Walt Disney Co (NYSE:DIS) and Netflix Inc (NASDAQ:NFLX) are interested in exploring other collaborations, they are not currently considering licensing their content to AI companies.
New AI tools such as OpenAI’s Sora and Alphabet’s Veo are generating excitement and anxiety within the film industry. These tools promise to help filmmakers create vivid clips from text descriptions, signaling a potential shift in how content is produced.
In the past, there have been conflicts between Big Tech companies and news publishers over the use of AI technology, particularly concerning the unauthorized use of content for training AI models. Google’s AI search, in particular, raised concerns among publishers about potential traffic loss.
Reports indicate that major tech companies, including Microsoft, Meta, and Alphabet, have invested over $32 billion in AI infrastructure in the first quarter of 2024.
As of the latest check on Friday, shares of GOOGL traded higher by 0.52% at $174.45 premarket, while META was up 0.41% at $467.70. These developments highlight the evolving landscape of AI technology and its impact on the entertainment industry.
