OpenAI has been in talks for months with big companies like Walt Disney, Universal Pictures, and Warner Bros. about the creative and business possibilities of Sora. However, Studios are reluctant to get into business with an AI company, wary of how it might use their data.
Two reasons why Hollywood is ignoring OpenAI. One; concerns about the use of AI were one of the biggest factors in two labor strikes that paralyzed Hollywood in 2023. Two; screenwriters and actors have been asking Hollywood studios to monitor tech companies. This is to make sure their work is not being used illegally.
When it comes to the commercial potential of artificial intelligence, movie studios are off to a much slower start https://t.co/ZtB4f6I6Wf
OpenAI, worth $157 billion, started pursuing Hollywood after the introduction of Sora in early 2024. OpenAI leaders, including CEO Sam Altman, went to Los Angeles to attend some events in Hollywood. They met with movie companies, media leaders, and talent agencies to show them the technology. However, those talks have yet to produce any deals.
Brad Lightcap, OpenAI’s chief operating officer, said, “We’re so early with Sora […] “I think part of getting these things right is you can’t just say, ‘Okay, we have a model, now we’re going to force a partnership.” The company is engaged with the industry, he said, adding that “their feedback is super valuable.”
Film studios are afraid of selling their assets without a plan on how to get paid
Talks with studios have become more difficult. There is a lot to be cautious about. For status, companies like Google, Meta, and Netflix take viewers and advertisers often using their content. Therefore, film studios are hesitant to give their valuable assets to another big tech company without getting a lot of money in return.
In addition, record labels made billions by owning shares in Spotify. However, major companies did not invest in newer platforms like YouTube or Netflix, where most filmmakers put their content.
Some studios have also discussed the possibility of licensing their movie and TV show catalogs to OpenAI. These deals could be worth millions and could help avoid messy copyright fights. The talks are still in the early stages and haven’t moved forward.
The companies and OpenAI haven’t agreed on a financial deal that suits both of them. It’s not clear how a company will share profits with filmmakers or actors who are supposed to get a part of the earnings from a project.
However, OpenAI said that it might be too soon to quickly enter into business relationships for Sora.
The only exception so far is Lionsgate, a mid-sized studio. In September, they made a deal with an AI startup called Runway to create a new AI model using Lionsgate’s collection of films. Lionsgate will use the technology to create videos for its upcoming projects.
Lionsgate Vice Chair Michael Burns said, “Several of our filmmakers are already excited about its potential applications to their pre-production and post-production process […] We view AI as a great tool for augmenting, enhancing, and supplementing our current operations.”
Still, many film execs believe that AI will lower the costs of animation and visual effects. In addition, a special version of Sora with OpenAI would use their characters for their own internal purposes.
OpenAI’s Deep Research bypasses DeepSeek
In other news, OpenAI revealed Deep Research. It is an agentic AI tool that can perform multi-step research on the internet for complex tasks. The creators of ChatGPT say that the tool can act like a human research analyst and that it can do in ten minutes what would take a person several hours.
According to shared benchmarks on debatably the hardest AI test, Humanity’s Last test, which was released less than two weeks ago, the tool stands out. Deep Research holds a significant lead ahead of ChatGPT03-mini and DeepSeek’s R1 V3-powered model via TechRadar.
A “personal AGI moment” for $200/month?
OpenAI’s new “Deep Research” blows DeepSeek out of the water with 26.6% accuracy in the world’s hardest “AI exam.”
The AI exam was made by very knowledgeable experts from around the world and includes some difficult questions. DeepSeek earlier held a significant lead against other proprietary models with a 9.4% accuracy score. Looks like the tool is meeting expectations.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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