Google courts studios for AI licensing deals

Google has been quietly approaching Disney, Universal, Warner Bros. Discovery and other studios about licensing characters, film libraries and related metadata for use in AI models. No agreements have been reached, according to people familiar with the conversations, as studios weigh potential revenue and production efficiencies against legal exposure, worker protections and talent backlash.

The outreach reflects a changed relationship between Google and Hollywood after earlier conflicts over unauthorized clips on YouTube. Google now has deeper ties through cloud services, YouTube distribution and AI work, and it invested $75 million in A24 as part of a strategic partnership to collaborate on AI tools. The company also has a partnership with director Darren Aronofsky’s venture Primordial Soup.

Studios remain cautious because Disney and others have sued AI companies over alleged copyright infringement, and Disney sent Google a cease-and-desist letter last year accusing it of using Disney copyrighted material without authorization to train AI systems. YouTube has also discussed likeness detection tools with agencies and studios, but some companies were asked to waive the right to sue Google if they participated.

Potential character licensing could become significant: one person familiar with such deals said an AI company could pay $40 million per character on average, with a deal for 100 characters reaching multiple billions. SAG-AFTRA has not been notified of any new major studio licensing deals with an AI company, and studios’ contracts with writers, directors and actors include AI protections.