AI is starting to transform Hollywood, whether filmmakers and audiences are ready or not.
In one of the most significant AI deals of 2025, Disney and OpenAI in December struck a three-year licensing agreement where Disney would become “the first major content licensing partner on Sora” and invest $1 billion into the AI pioneer. It was a striking peacemaking between legacy Hollywood and an AI giant, which had just months earlier clashed over OpenAI’s use of copyrighted characters and work.
Elsewhere, AI startups have been raising millions of dollars from venture capital firms on the promise of changing the legacy Hollywood film and TV business.
The tools they are building are being used across the production cycle. Some, like Moonvalley, are enhancing special effects. Others are promising to help with marketing, content distribution, and content discovery.
It’s a challenging time for Hollywood. Budgets generally aren’t what they used to be, and studios know they need to do what they can to make projects faster and cheaper. Enter AI.
Netflix and Amazon have talked about how they’re using AI to pull off elaborate special effects and improve the viewing experience. Lionsgate is partnering with startup Runway to train an AI model on its library. Others in Hollywood are using AI but not talking about it.
At the same time, many are worried about tech giants using AI to appropriate their IP. Studios have taken issue with OpenAI’s Sora generating videos that encroach on their copyrighted characters. Disney and Universal sued Midjourney, accusing it of using tech to rip off Star Wars, Minions, and more.
Studios must also be sensitive to talent’s fears of being supplanted by AI as well as audiences’ attitudes. A YouGov survey in early October found viewers were mixed on the use of AI. People were most accepting of AI being used to translate subtitles into other languages (64% for), but least accepting of the idea of AI characters replacing human actors (65% against).
How are AI founders pitching investors and Hollywood insiders on their vision of the future?
Business Insider has interviewed the founders of startups behind tools to disrupt traditional TV and filmmaking. They shared the pitch decks they used to raise capital.
Read 8 pitch decks AI startups used to raise millions to disrupt Hollywood:
Series B
- Moments Lab, a French company whose tools index studios’ video libraries and create new videos from raw footage: $24 million
- Neosapience, a synthetic voice and video platform: $21.5 million
Series A
Seed
- Wonder Studios, a UK firm that uses AI to extend IP and create original works: $12 million
- Metaphysic, which uses AI to make realistic deepfakes: $7.5 million
- Filmustage, which uses AI to analyze scripts and do other pre-production tasks: $1.5 million
Pre-seed
Other
- Fable Studio, which landed Amazon backing to let creators make their own animated shows: undisclosed
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