Hollywood and OpenAI: how artificial intelligence is reshaping the cinema economy

The alignment between Hollywood's major studios and AI companies such as OpenAI has reached a concrete stage through Italian director Luca Guadagnino's new artificial-intelligence-themed film "Artificial." According to a comprehensive analysis by The Verge on Tuesday, the alignment could profoundly affect the next five years of the film industry.
"Artificial" was developed after a series of conversations between Guadagnino and OpenAI CEO Sam Altman. The film's script handles tensions inside an AI laboratory; a fictional CEO and a research director occupy central roles. The Verge said Amazon MGM Studios, A24, Neon and Mubi are competing for the distribution rights to the film.
In addition to subject-matter alignment, the use of AI tools in the production process signals a structural transformation for the film industry. The transformation that Hollywood studios went through with CGI and visual effects a decade ago is happening again now through AI tools that affect scriptwriting, post-production and visual elements.
The Verge listed OpenAI's recent moves to position itself inside Hollywood's ecosystem over the past two years: access partnerships with studios for the Sora video generation model, collaborations with actors such as Bryan Cranston for voice synthesis, and technical consulting to primary production studios. These moves position AI not as a tool, but as a partner in the creative process.
The development of the film is contested in the industry. Writers Guild of America (WGA) leadership told The Verge: "It must be carefully watched that AI companies are this closely involved with the cinema industry, both in terms of copyright and labor conditions." Since the 2023 strike, the WGA has been sensitive about how AI use is regulated; restrictions have been introduced into standard member contracts.
In contrast, some producers argue that AI tools enable small and independent filmmaking. The cost of visual effects had turned into an advantage for high-budget films (generally above 100 million dollars) over the last decade; AI-based VFX tools also open this advantage to smaller filmmakers.
The Verge also noted that the nature of OpenAI's investment in Hollywood differs from those of Anthropic, Google DeepMind and Meta's Llama teams. Anthropic does not yet have a video model comparable to Sora; while Google's VEO model has secured Hollywood partnerships, its scope is more limited.
Public acceptance of films being produced with Sora or comparable models remains uncertain. According to a Pew Research Center 2025 survey cited by The Verge, about 56 percent of US adults said they would prefer to avoid AI-generated scenes. In the same survey, around 30 percent considered AI production to be an acceptable integration.
A significant portion of upcoming negotiations between film industry unions will revolve around AI. The Screen Actors Guild (SAG-AFTRA) is seeking enhanced rights for AI voice and image use in its 2027 contract renewal cycle. Similar negotiations are expected for writers, directors and technical crews.
Guadagnino's film is a sign that Hollywood is embracing AI as theme, production tool and business partner. As The Verge stresses, the speed with which the film industry has accepted this innovation has the potential to reshape the sector from the ground up. Over the coming years, the mutual dependence of AI and Hollywood appears set to deepen.
Read next

Why vulnerability reports are no longer 'special': the false-alarm problem in the bug-bounty ecosystem
Former Go security lead Filippo Valsorda argues in a blog post that genuine security findings are becoming harder to distinguish in the flood of reports arriving at bug-bounty programs. The post, discussed at the top of Hacker News, exposes how open-source projects are affected.

Global cargo delivery from orbit: how SpaceX's Starfall is designed to work
SpaceX has revealed the first details of Starfall, a suborbital cargo-drop variant of Starship. According to Ars Technica's report on the project, the goal is to deliver material to any point on Earth in less than an hour.

What is post-quantum cryptography, and why the US has accelerated its migration deadline
The White House has significantly shortened the deadline by which federal systems must move off quantum-vulnerable cryptography. The executive order, described by Ars Technica, explains what threat post-quantum cryptography (PQC) protects against and why the migration is technically difficult.

How Menlo Ventures closed a $3 billion fund after its bet on Anthropic paid off
US venture firm Menlo Ventures has closed a new $3 billion fund following the payoff of its early bet on Anthropic. The report, from TechCrunch, illustrates how outsized returns in the artificial-intelligence sector are reshaping fund sizes.

What is YOLO26? A practical introduction to the real-time object-detection model
YOLO26, the latest version in the YOLO family, has set a new reference point for the real-time computer-vision community. A comprehensive introduction from Roboflow covers the new architecture, ease of training and real-world applications in depth.
