Major entertainment conglomerates in Hollywood are beginning to mount a significant defense against what they perceive as the unchecked advancement of artificial intelligence into their creative domain. Several of the industry’s most powerful studios have directed their attention toward OpenAI’s Sora model, asserting that the tool improperly reproduces moving images inspired by their protected intellectual property. Similar charges have been brought against other AI innovators as well—most notably Disney and Universal, which recently filed lawsuits against Midjourney. Their complaint alleges that the company’s technology has been employed to mimic and reproduce countless well-known fictional figures, effectively infringing upon the visual identities of characters that form the very foundation of their cinematic empires.
Paradoxically, while legal departments wage these battles in courtrooms, behind closed doors the tone within many entertainment institutions is far more pragmatic and exploratory. Leading studios, directors, and producers are integrating AI systems into virtually every stage of production—from initial concept development to post-editing workflows—often with cautious optimism. The Hollywood community is watching closely. Attendance at events like the annual AI on the Lot conference has more than doubled in a mere three years, reaching 1,200 participants this May, symbolizing a broader shift in the industry’s mindset. The growth of AI-focused firms such as Runway, which drew roughly 1,000 attendees to its third film festival, further underscores the profound curiosity sweeping the creative sector.
AI’s alluring potential lies in its promise to remedy some of Hollywood’s most persistent difficulties: the enormous cost of production and the inefficiencies of content discovery in an era of boundless media. As media strategist Peter Csathy succinctly noted, regardless of whether industry professionals view these intelligent tools with enthusiasm or trepidation, artificial intelligence has irreversibly become part of the entertainment ecosystem.
Venture investors have responded swiftly to this evolution. Firms are channeling capital into startups such as Ecco, which employs AI to allow users to search seamlessly for shows or films across a fragmented streaming landscape. A viewer might simply ask, for instance, “Show me all the series centered on Formula One racing,” and the software would retrieve results from multiple platforms instantaneously. Ecco has so far raised $7 million from an impressive roster of backers, including television producer Ben Silverman, basketball legend Shaquille O’Neal, and other prominent investors.
Among those betting on AI’s growing influence is Ishan Sinha, a consumer partner at Point72 Ventures. While he acknowledges that the initial excitement surrounding AI-generated videos has not yet translated into significant consumer demand, Sinha expresses strong confidence in companies that deploy AI for more practical purposes—particularly for facilitating global distribution through personalized recommendations, far-reaching translation features, and systems that help creators maintain control of their intellectual property. In his assessment, the most successful consumer platforms are those that attract vast audiences and retain their attention by offering distinctive value propositions—whether through curated playlists, exclusive IP, or refined content aggregation methods designed to keep users engaged.
Point72’s portfolio reflects this philosophy. The firm has invested in GlobalComix, which leverages artificial intelligence to deliver targeted recommendations and translate content for comic and manga readers who might otherwise never discover certain titles. Another investment, Cheehoo, partners with animation studios to streamline complicated production pipelines. Chronicle Studios, also within the portfolio, assists independent animators in expanding their viewership and monetizing creative projects well beyond traditional platforms like YouTube.
For many investors, AI is not only about optimization—it is also a catalyst for reimagining what storytelling itself can be. Moonvalley, a leading AI-driven enterprise embedded in the Hollywood ecosystem, attracted $84 million in funding from prominent firms such as General Catalyst to further develop its suite of AI video tools tailored for filmmakers and other creatives. Similarly, Amazon has thrown its support behind Fable Studio’s Showrunner, a groundbreaking platform that empowers users to generate and customize their own shows, effectively transforming viewers into co-creators of entertainment.
Across this rapidly evolving landscape, numerous AI companies are transforming how Hollywood functions, and some have leveraged strikingly persuasive pitch decks to secure the financing they need to pursue that transformation. Take the case of animation: though AI has yet to fully produce feature-length films autonomously, it has already revolutionized animation production by drastically cutting time and expense. Startups like Toonstar—the studio behind the series “StEvEn & Parker”—utilize artificial intelligence for every stage of development, from narrative conception to image generation, claiming they can produce high-quality episodes at just a fraction of the usual cost of conventional animation methods.
Chronicle Studios, co-founded by Chris deFaria, who formerly headed animation divisions at Warner Bros. and DreamWorks, is another firm advancing the field by applying AI to elevate the work of animators, enabling them to achieve more ambitious results. Alongside it, a wave of new ventures is emerging: Further Adventures, which invests in digital creators and independent filmmakers; Invisible Universe, an animation studio supported by Seven Seven Six; and Promise, an AI-centered creative studio backed by influential investors such as Peter Chernin’s North Road, Andreessen Horowitz, and Google. Yet as DeFaria himself has admitted, even as AI makes the production process quicker and cheaper, truly enduring stories still depend on human creativity and audience engagement—the latter remaining one of the industry’s most stubborn challenges.
Special effects represent another frontier being radically reshaped by artificial intelligence. Companies like Runway, which has raised an impressive $545 million from investors including General Atlantic, and Deep Voodoo, supported by Connect Ventures, are using AI to create advanced techniques for de-aging actors and introducing unprecedented visual realism. The industry is also undergoing a period of consolidation: Metaphysic, known for digitally rejuvenating Tom Hanks and Robin Wright in Robert Zemeckis’ film “Here,” was purchased by DNEG Group’s AI subsidiary Brahma. Meanwhile, Papercup’s pioneering voice-cloning technology was acquired by RWS, and its core team transitioned to work under the umbrella of Scale AI.
AI’s role now extends even further—to accelerating dubbing timelines, recreating the distinct voices of deceased performers, and restoring iconic films and television archives. With streaming services increasingly targeting international markets, the urgency to translate and localize content has surged. New AI-powered dubbing systems are being hailed for their ability to synchronize translations more naturally, finally addressing the awkward mismatches that long plagued dubbed media. Runway, for example, made headlines after announcing agreements with Lionsgate to train AI models using its extensive movie library and with AMC Networks to produce promotional video material for its programs automatically.
Another notable player, Deepdub, has broadened the application of its AI dubbing technology to encompass live broadcasts—covering sports events, esports tournaments, and breaking news. According to CEO Ofir Krakowski, for the first time, broadcasters can deliver multilingual commentary that conveys not only the precise meaning of the words but also the emotional urgency and authenticity inherent to live performances.
Beyond post-production and animation, AI startups are increasingly reshaping the earliest phases of content creation itself. These applications reach into script analysis, catalog exploration, and even idea generation, as models learn from successful past works to inspire new ones. The UK-based Wonder Studios, closely associated with OpenAI and Google, has raised $12 million to help rights holders expand their franchises into new video formats and generate original content via AI systems. In Europe, Paris-based Moments Lab secured $24 million in new funding from investors such as Oxx and Orange Ventures. Its software, already employed by major media organizations including Warner Bros. Discovery and Hearst, promises to accelerate the creation of social media clips—reportedly seven times faster than traditional editing methods, according to cofounder Phil Petitpont.
Taken together, these ventures sketch a vivid picture of a film industry undergoing a profound and complex metamorphosis. Hollywood’s relationship with artificial intelligence may still oscillate between fascination and fear, but one fact has become inescapably clear: AI is not an external disruption waiting to arrive—it has already become an indispensable collaborator, intricately woven into the fabric of modern storytelling.
Sourse: https://www.businessinsider.com/startups-investors-ai-hollywood-pitch-decks
