Google has been approaching major Hollywood studios, including Disney, Warner Bros. Discovery and Universal, seeking licensing deals that would let it train its AI models on their copyrighted film and TV libraries. According to sources cited by the Los Angeles Times, the tech giant is prepared to pay huge sums for the rights, a move that would give it a significant edge in the AI race while potentially handing studios a lucrative new revenue stream. However, the arrangement carries risks for the studios, who could alienate workers and audiences if the partnerships are seen as embracing AI at the industry's expense.

Google could reportedly pay a studio such as Disney or Pixar around $40 million (roughly £31 million) for the rights to generate outputs featuring just one copyrighted character, with total deals potentially reaching into the billions depending on how many characters are included; studios might also receive a cut of related advertising revenue on platforms such as YouTube. No agreements have yet been confirmed, but such a deal would help legitimise generative AI in the public eye after years of controversy, building on Google DeepMind's $75 million (roughly £59 million) investment deal with A24 this summer, while Lionsgate's 2024 licensing deal with Runway has so far produced no concrete results.