Google Pursues High-Stakes Licensing Deals With Hollywood Studios

Google is attempting to secure licensing agreements with several of Hollywood's largest studios to train its AI models on copyrighted material, as first reported by The Verge. The company is reportedly offering massive cash payments to gain access to vast content libraries.

While Google has not yet reached official agreements with Universal, Warner Bros. Discovery, or Disney, sources cited by The Los Angeles Times indicate that Google executives have pitched deals involving significant payouts. For example, Google might pay around $40 million to Disney / Pixar for the rights to produce outputs featuring just one copyrighted character. Total payouts could reach into the billions depending on the number of characters included. Additionally, studios could potentially secure a share of advertising revenue generated by AI content featuring their intellectual property on platforms such as YouTube.

These efforts follow a $75 million investment deal between Google's DeepMind arm and A24 earlier this summer. The Verge notes that such partnerships would allow Google to legitimize its generative AI technology and shift public perception, which has trended negative among young people. By producing approved content featuring iconic characters like Snow White or Darth Vader, Google aims to move away from the "slop" associated with models trained on unauthorized data.

While major studios remain cautious, some smaller players have already moved. The Verge reports that Lionsgate signed a licensing deal with Runway in 2024 to train AI models on its movies and shows, with the companies working toward releasing AI-generated shorts.