Google sees Hollywood’s characters and libraries as a route to make generative AI feel legitimate; studios see a potentially rich deal that could also cost them creative control, worker trust and public goodwill.

The industry has already tested the waters. In 2024, Lionsgate reached a licensing arrangement with AI company Runway, with the companies saying they were developing AI-generated shorts. That precedent did not trigger a rush by the major studios, however: Disney, Warner Bros. Discovery and Universal have remained notably cautious as the stakes around copyrighted franchises and jobs have grown.¹

Now Google is approaching Hollywood’s biggest players for permission to train its models on film libraries and characters, reportedly offering hundreds of millions of dollars. The pitch is twofold: licensed material could produce cleaner, studio-approved AI outputs, while Google’s tools could streamline visual effects and speed production. Google’s broader wager is that familiar, authorized characters would help soften public suspicion of an industry increasingly associated with copyright disputes and automated job cuts.²

For studio executives, the attraction is obvious. A deal could bring upfront licensing payments, possible advertising revenue from AI content and cheaper, faster production. But the same efficiency argument alarms union workers and creators, who fear that AI will displace jobs, weaken copyright protections and shift artistic decisions away from the people who make the work.²

The audience risk may be just as pressing. Backlash over AI-generated images connected to Spider-Man: Brand New Day offered a warning that fans may not treat AI as a behind-the-scenes technical upgrade. As one assessment put it, “the AI industry needs Hollywood more than Hollywood needs more slop.”¹ Google needs a marquee studio to validate its model; Hollywood, meanwhile, must decide whether the money is worth becoming that validation.