Lionsgate is acquiring a stake in generative AI video company Runway, poaching its existing franchise catalog of AI short-form series, expanding on a partnership the two companies signed in 2024 and reinforcing the studio’s bullish approach to the technology.
With this expansion, Lionsgate and Runway are launching a new development program to use AI to create new content, or intellectual property, with plans to deploy multiple projects that incorporate generative AI. The companies will also launch a series of “filmmaker-focused events.”
Financial terms of the deal were not disclosed, but Lionsgate’s stake in the AI company is not a cash investment.
“Runway is a great creative partner, an exciting part of our AI strategy, and a valuable driver in expanding our storytelling capabilities,” Lionsgate Vice Chairman Michael Burns said in a statement. “This is an iterative process. As we continue to expand the use cases of Runway technology across our production operations and bring the tools to more filmmakers, we believe this will help our talented people redefine and reshape the art of what is possible in their creative endeavors.”
The companies first partnered in September 2024, with Lionsgate employing Runway’s technology for pre-visualization, storyboarding, parts of the post-production process, and the potential reuse of content across rating scales and genres. But Thursday’s announcement marks a dramatic expansion of the deal, potentially allowing characters from some of Lionsgate’s properties (the studio didn’t say what it is) to appear in the AI project. Some of the biggest series include “John Wick” and “The Hunger Games.”
“We consistently see that the studios most serious about AI are thinking about AI as a creative resource rather than a cost-cutting tool,” Runway co-founder and co-CEO Cristóbal Valenzuela said in a statement. “Lionsgate understands that. This expanded partnership will help us tell more stories faster. This is core to our mission at Runway, and we’re excited to help create the next generation of iconic content.”
Lionsgate’s full AI push comes amid technology turmoil across Hollywood as the company advances potential deals with generative companies that protect scores of characters while adhering to union agreements that govern the use of actors and writers’ work. Lionsgate hired Kathleen Grace as its first “chief AI officer” in February, and Burns said in a press conference last week that AI will save the company “tens of millions of dollars a year” in film and TV production costs.
During the Gabelli Sports & Media Symposium in New York, Burns also appeared to hint at an expanded partnership, calling Lionsgate an “interesting strategic partner” and noting the company’s work with Runway, which raised funding at a $5.3 billion valuation earlier this year.
“I made a joke [CEO Cristóbal Valenzuela] “When we first made the deal with him, I said, ‘One day, I’m going to buy you out,'” Barnes said, per Deadline. “Now he’s probably looking at me and grinning and saying, ‘Well, let’s see what our valuation is.'”
In Lionsgate’s most recent fiscal quarter (January to March), the company’s overall revenue reached $906.5 million, up from $865.6 million a year earlier, and net income was $70.2 million, up from a loss of $117.4 million a year earlier.
