Alphabet, Meta Engage Hollywood Studios in Major AI Video Licensing Deals - Alphabet (NASDAQ:GOOGL), Meta
AI in Hollywood: Innovation or Exploitation?
Alphabet Inc. and Meta Platforms Inc. are in discussions with Hollywood studios to license content for their AI video generation technologies. These firms aim to create realistic scenes from text prompts and are willing to pay significantly for studio partnerships. Meanwhile, Microsoft's OpenAI is similarly engaged in licensing talks.
Hollywood studios are interested in using AI to reduce production costs but are cautious about content misuse. For instance, Scarlett Johansson recently challenged OpenAI over unauthorized use of her voice. News Corp has struck a deal with OpenAI, while companies like Disney and Netflix are exploring different types of collaborations but are hesitant about content licensing.
The integration of AI in film production is both promising and concerning for the industry. Big Tech's investment in AI, including a collective $32 billion by Microsoft, Meta, and Alphabet, underscores the growing influence and potential of AI in creative industries.
What specific content are Alphabet Inc. and Meta Platforms Inc. seeking to license from major Hollywood studios for their AI video generation software?
Alphabet Inc. and Meta Platforms Inc. are in discussions with major Hollywood studios to license content specifically for their AI video generation software. This technology they are developing aims to create realistic scenes based on text prompts. The companies have proposed substantial financial offers to these studios as part of the licensing agreements. The goal is to utilize AI to help reduce production costs while ensuring that the original work of the studios is not misused or exploited without proper oversight.
Can you detail the agreement between News Corp and OpenAI regarding the use of News Corp's publications?
News Corp has entered into a significant agreement with OpenAI, the creator of ChatGPT, which allows OpenAI to use content from News Corp's publications236. This deal, announced on Wednesday, is valued at potentially over $250 million and is set to last for five years2. Under the terms of this agreement, OpenAI will have access to both current and archived content from News Corp-owned outlets, which include high-profile names like The Wall Street Journal and The New York Post256. The partnership is structured to benefit both parties, with OpenAI gaining a rich source of factual content to enhance its AI models and responses, while News Corp receives financial compensation and potentially increased influence and visibility in the AI space236. This deal marks a strategic move by News Corp to engage cooperatively with AI technology advancements, rather than opposing them through legal challenges, as seen with other publishers6.