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Alphabet and Meta Engage Hollywood Studios in Major AI Video Licensing Deals – Alphabet (NASDAQ: GOOGL), Meta Platforms (NASDAQ: META)

Alphabet and Meta Engage Hollywood Studios in Major AI Video Licensing Deals – Alphabet (NASDAQ: GOOGL), Meta Platforms (NASDAQ: META)


AlphabetInc.GOOG GOOGLE AndMeta Platforms Inc.META have discussed content licensing with major Hollywood studios for their AI video generation software.

These companies are developing technology to create realistic scenes from text prompts and have offered substantial sums to partner with studios.

PeerMicrosoft Corp.MSFT Backed OpenAI is engaged in similar talks, Bloombergreports.

Hollywood studios want to use AI to reduce costs while ensuring their work is not misused. They are cautious about licensing content without controlling its use.

Recently, Scarlett Johansson demanded that OpenAI stop using a voice sounding like hers for its chatbot.

Wednesday,News Corp.NWS NWSA has agreed to let OpenAI use content from its publications in a deal potentially worth more than $250 million over five years.Warner Bros.WBD is open to licensing specific programs, but not its entire library.

Walt Disney CompanySAY AndNetflix Inc.NFLX are interested in further collaborations, but without licensing their content.

New AI tools, like OpenAI Sora and Alphabets Veo, promise to help filmmakers create vivid clips from text descriptions, sparking excitement and anxiety in the industry.

Previously, major US technology companies and news publishers were at loggerheads over the influence of AI, particularly regarding the unauthorized use of its content for AI training.

Google's AI search raised concerns among publishers, who feared losing a substantial portion of their Google-generated traffic.

Reports indicate that Microsoft, Meta and Alphabet have committed over $32 billion to AI infrastructure in the first quarter of 2024.

Price Actions:At last check Friday, GOOGL shares were up 0.52% at $174.45 pre-market. META was up 0.41% at $467.70.

Photo by De Andre Bush via Unsplash

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