ZINGER KEY POINTS
- Alphabet and Meta are in talks with Hollywood studios to license content for their AI video generation software, offering substantial sums.
- Hollywood studios want to cut costs with AI but ensure their work isn’t misused, as seen in Scarlett Johansson’s demand to OpenAI.
Alphabet Inc. and Meta Platforms Inc. have discussed licensing content 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.
Peer Microsoft Corp backed OpenAI is engaged in similar talks, Bloomberg reports.
Hollywood studios want to use AI to cut costs but ensure their work isn’t misused. They are cautious about licensing content without control over its use.
Recently, Scarlett Johansson demanded that OpenAI stop using a voice resembling hers for its chatbot.
On Wednesday, News Corp agreed to let OpenAI use content from its publications in a deal potentially worth over $250 million over five years. Warner Bros. Discovery Inc is open to licensing specific programs but not its entire library.
Walt Disney Co and Netflix Inc are interested in other collaborations but not licensing their content.
New AI tools, like OpenAI’s Sora and Alphabet’s Veo, promise to help filmmakers create vivid clips from text descriptions, causing excitement and anxiety in the industry.
Previously, the U.S. Big Tech companies and news publishers were at loggerheads over AI’s influence, particularly regarding the unauthorized use of the latter’s content for AI training.
Google’s AI search bred concerns for publishers over losing a substantial portion of their Google-generated traffic.
Reports indicated Microsoft, Meta, and Alphabet committed over $32 billion in AI infrastructure in the first quarter of 2024.
Price Actions:
At the last check Friday, GOOGL shares traded higher by 0.52% at $174.45 premarket. META was up 0.41% at $467.70.
—
Originally Posted May 24, 2024 – Alphabet, Meta Engage Hollywood Studios in Major AI Video Licensing Deals
Disclosure: Benzinga
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Disclosure: Interactive Brokers
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Benzinga and is being posted with its permission. The views expressed in this material are solely those of the author and/or Benzinga and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Join The Conversation
If you have a general question, it may already be covered in our FAQs. If you have an account-specific question or concern, please reach out to Client Services.