Google is investing in an independent film company, A24, as part of a new AI research partnership between the two companies. This marks the first time Google has taken a stake in a studio, and I break down why I think this is a smart move.
00:00:39.160Google is investing in an independent A24.
00:00:41.980As part of a new AI research partnership between the two companies,
00:00:45.500the giant has given them $75 million into the recent hits Backrooms and Marty Supreme.
00:00:50.240According to people familiar with the Matterdough Alphabet unit,
00:00:52.740Google is a major player in online entertainment through YouTube.
00:00:55.260The deal marks the first time it has taken a stake in a studio.
00:00:59.420Google's DeepMind AI unit and A24 are aiming to create new tools for movie production and distribution.
00:01:05.620Disney signed a partnership with OpenAI last year that abruptly ended with the tech company shut down its Sora video tool in March.
00:01:12.360Netflix recently acquired AI startup founded by Ben Affleck that can tweak scenes without reshoots.
00:01:17.860But by and large, mainstream Hollywood has done little with AI thus far.
00:01:22.120Scott Belsky, an A24 partner who oversees his technology and innovation work, said this is because developers have pushed AI as a way to make movies faster and cheaper, which doesn't appeal to filmmakers.
00:01:34.220We think there are better uses that preserve creative control and support risk-taking, and new tools won't look anything like the prompted generation type of AI that people feel uncomfortable with.
00:01:47.080Their multi-year, non-exclusive deal doesn't give Google access to A24 data, including its film and television library.
00:03:08.600a bright yellow book called The Messy Middle, and he wrote that when he was at Adobe.
00:03:15.260And at Adobe, he was working on building all kinds of tools for all kinds of uses.
00:03:20.300That is the DNA structure of Scott, who is a partner at A24.
00:03:24.840So when I hear that voice talking, and I know his preset mind on building tools and making
00:03:32.740tools better, I believe that this is an investment.
00:03:36.760Thrive Capital also made an investment in A24.
00:03:40.120So I believe what we are seeing here is what's going to come out of here is not a studio in what we think.
00:03:45.860I think they are a studio, but I think you're going to see tools and you're going to see a lot of things coming out of it as opposed to what I first reaction was.
00:03:56.300I dove into it because I said $75 million.
00:03:58.120That won't even fund a small biopic about two freedom-loving entrepreneurs that create a search company.
00:04:05.240You know, you can't make that movie for $75 million.