Key Takeaways
- Google executives have quietly approached Disney, Universal, Warner Bros. Discovery and other major studios to license intellectual property for training its AI models, but no formal agreements have been reached yet.
- Studios are eager to explore AI for cost‑saving production tools while safeguarding their IP and addressing talent‑union concerns about unauthorized use of actors’ and writers’ work.
- Past friction—epitomized by the Viacom‑YouTube lawsuit—has given way to a more collaborative stance, with Google already providing cloud services, YouTube distribution, and DeepMind‑driven AI tools to entertainment partners.
- Recent moves, such as a $75 million strategic investment in A24 and a partnership with director Darren Aronofsky’s Primordial Soup, aim to rebuild Google’s Hollywood reputation and gather creative feedback for better AI‑powered products.
- Licensing studio characters for AI‑generated outputs could become a lucrative revenue stream (estimates of ~$40 million per character), while YouTube’s likeness‑detection tech offers a potential monetisation path for AI‑generated content that respects copyright.
- Talent guilds remain wary; SAG‑AFTRA has not been notified of any new studio‑AI licensing deals, underscoring the cautious pace of dealmaking amid fears of job displacement and uncompensated use of performances.
- Despite the hurdles, industry leaders acknowledge that the question has shifted from “Will we use AI?” to “How will we use AI?” as both tech giants and studios seek a mutually beneficial framework.
Google’s Quiet Overture to Hollywood
Google has been making discreet approaches to the major studios—including Disney, Universal, Warner Bros. Discovery and others—seeking to license intellectual property (IP) for use in training its artificial‑intelligence models. According to three people familiar with the conversations, who asked not to be identified, the talks have yet to produce any signed agreements. The sources noted that the discussions are stalled by the legal and ethical complexities surrounding AI, as well as by concerns over how Hollywood talent and unions would react to their work being used to train machines.
Why Studios Need Google’s AI
An insider, speaking on condition of anonymity because of the sensitivity of the talks, explained that “in order for Google’s tools and technology to be truly usable for large‑scale film and TV productions, let alone cinematic exhibition, it is essential that their models be fine‑tuned with highly dynamic content and metadata that only Hollywood studios have.” Studios possess vast libraries of scripts, footage, metadata, and performance data that could dramatically improve the relevance and quality of Google’s generative‑AI tools for tasks such as script assistance, visual‑effects pre‑visualisation, and localisation.
Competitive Pressures on Both Sides
Google faces mounting competition in the AI space from rivals like OpenAI, Microsoft, and emerging start‑ups, pushing it to secure proprietary data that can differentiate its offerings. Meanwhile, studios are under pressure to cut production costs and accelerate timelines, making AI an attractive lever for efficiency—provided they can guard against unauthorized use of their creations. As former studio and network executive Tom Nunan put it, “Google’s enlisting some of the smartest people in Hollywood to try to unpack what’s inevitable, which is Hollywood and AI are going to become reliant upon each other, and how best can we understand that without just terrifying people.”
From Adversaries to Partners
A decade ago, Google’s relationship with Hollywood was markedly antagonistic. The company clashed with studios over legislation aimed at curbing piracy, and YouTube became a haven for unauthorized uploads of film and TV clips. Viacom’s $1 billion lawsuit against Google in 2007 (settled in 2014) exemplified the tension. Today, however, Google already does business with many entertainment entities through its cloud division, YouTube distribution, and AI research arm DeepMind. The shift reflects a pragmatic recognition that cooperation may be more lucrative than confrontation.
Strategic Investments and Partnerships
In June, Google invested $75 million into A24, the indie studio behind Oscar‑winning films such as Everything Everywhere All at Once and Moonlight, as part of a strategic partnership to co‑develop AI tools. Rob Rosenberg, a partner at Moses & Singer and former Showtime Networks general counsel, observed that “they recognize that A24, while not the biggest studio, gives them a type of credibility they’re not getting yet in Hollywood… They’re in this image rehabilitation, this path of trying to gain not just acceptance but appreciation for the fact that they’re trying to take the high road.” Google also partnered with director Darren Aronofsky’s venture Primordial Soup, seeking direct feedback from acclaimed creatives to refine its AI offerings for the entertainment sector.
Learning from OpenAI’s Missteps
The A24 move also positions Google to capitalize on opportunities left by OpenAI, which shut down its text‑to‑video application Sora this year. Disney had previously licensed OpenAI to use AI‑generated versions of characters like Mickey Mouse on Sora, but that deal collapsed, prompting OpenAI to refocus its resources. Several studios, including Disney, have filed copyright‑infringement lawsuits against AI companies, and Disney even sent Google a cease‑and‑desist letter last year alleging unauthorized use of its copyrighted material to train Google’s AI systems.
Revenue Potential from Character Licensing
Licensing studio characters for AI‑generated outputs could become a significant new revenue stream. One source familiar with such deals estimated that an AI company might pay roughly $40 million per character on average, meaning a portfolio of 100 characters could command deals in the multiple‑billions‑dollar range. YouTube is also exploring its likeness‑detection technology to flag AI‑generated content that infringes on celebrity likenesses or copyrighted material, with the possibility of monetising such videos if rights holders choose to keep them on the platform. Justin Connolly, YouTube’s global head of media and sports and a former Disney executive, is reportedly involved in these discussions.
Talent Unions’ Caution
Despite the financial allure, Hollywood talent remains deeply wary. Actors and writers argue that their performances have been scraped to train AI models without permission or compensation, while visual‑effects workers fear job displacement. Studios have negotiated AI‑protective clauses in contracts for writers, directors, and actors, and SAG‑AFTRA’s national executive director Duncan Crabtree‑Ireland noted that the guild has not been notified of any new studio‑AI licensing deals, as required under their agreement. “The companies largely are moving carefully in this area,” he said, “they rightly recognize that there are a lot of potential pitfalls… That is part of why we see dealmaking in this area moving at a pace that allows for careful consideration of the implications.”
Broader Industry Moves Toward AI Adoption
Other players are also advancing their AI ambitions. In July, Disney launched an accelerator program that includes AI startups Promise and Open Art. In March, Netflix acquired Ben Affleck’s AI film‑tech startup InterPositive for $587 million. Rosenberg summarized the shift: “We’ve moved from the moment where there was a question, ‘Will we use AI?’ and now it’s a question of ‘How are we going to use AI?’” The sentiment reflects a consensus that AI’s integration into film and TV is inevitable; the challenge lies in shaping frameworks that respect creative rights, satisfy union concerns, and unlock productive, profitable collaborations.
Conclusion: A Delicate Balancing Act
Google’s current outreach to Hollywood illustrates a nuanced dance: the tech giant seeks the rich data and creative expertise that only studios can provide, while studios weigh the promise of cost‑saving AI tools against the risks of IP exploitation and talent backlash. The history of YouTube’s early piracy battles serves as a cautionary tale, reminding both sides that unchecked expansion can provoke severe reputational and legal fallout. As negotiations continue, the industry will watch closely to see whether Google can rebuild trust, secure mutually beneficial IP licences, and help usher in an era where AI augments—rather than undermines—the creative process.
https://www.latimes.com/entertainment-arts/business/story/2026-08-31/how-google-is-courting-hollywood-to-use-its-ai-tools