Google courts Hollywood studios to license IP for AI tools - but no deals yet

Google is quietly courting Hollywood's biggest studios to license their intellectual property for AI models, according to three people familiar with the discussions. Executives at Disney, Universal, and Warner Bros. Discovery have been approached, but no agreements have been reached yet. The talks mark a significant shift from the adversarial relationship Google had with Hollywood over YouTube piracy a decade ago.

Google's Hollywood strategy: A24 investment and YouTube initiatives

Google's push includes a $75 million investment in A24 and a partnership with Darren Aronofsky's Primordial Soup. The A24 deal is seen as a way to gain credibility with the creative community. YouTube is also central to the strategy: its global head of media and sports, Justin Connolly, has been involved in discussions about using likeness-detection technology to flag AI-generated content and potentially monetize it. Some studios were asked to waive their right to sue Google to participate in that program.

Why this matters for AI builders

For teams building AI tools for media production, the core takeaway is the demand for fine-tuned models trained on dynamic studio content and metadata. An insider told the LA Times that Google's tools need "highly dynamic content and metadata that only Hollywood studios have" to be usable for large-scale productions. If licensing deals materialize, they could unlock new revenue models: one person familiar with these deals estimated that licensing a single character IP could cost $40 million on average. The collapse of OpenAI's Sora and its Disney deal leaves an opening for Google to capture the AI video market.

The caveats: No deals, legal risks, and union concerns

No agreements have been reached, and the path forward is complicated. Studios are wary of licensing terms and liability waivers. SAG-AFTRA's national executive director Duncan Crabtree-Ireland said no major studios have notified the guild of any new licensing deals, and that companies are "moving carefully" because of potential pitfalls around creative talent rights. Disney previously sent Google a cease-and-desist letter accusing the tech giant of using its copyrighted material without authorization to train AI systems. Studios also have ongoing copyright lawsuits against other AI companies.

What's next: YouTube as a monetization platform

YouTube's IP-licensing and likeness-detection initiatives could provide a monetization path for AI-generated content, with Google sharing ad revenue. But studios remember the YouTube era of unauthorized clips and are approaching cautiously. The outcome of these talks will shape how AI tools get integrated into filmmaking and distribution, but for now, the only certainty is that both sides are still negotiating.