Hollywood
Amazon bets on AI studio to slash costs and speed up film making
SEATTLE: Amazon is rolling out a new artificial intelligence initiative at Amazon MGM Studios to accelerate film and television production, as soaring budgets squeeze output and the entertainment industry braces for disruption.
The company has set up an internal unit dubbed AI Studio, led by Albert Cheng, a veteran entertainment executive, to develop tools designed to cut costs and fast-track creative processes. A closed beta programme will launch in March with selected industry partners, with early results expected by May.
Cheng described the unit as a small, agile “startup” operating under founder Jeff Bezos’s “two pizza team” philosophy, made up largely of product engineers and scientists alongside a smaller creative and business group.
Amazon is publicly embracing AI to tackle the rising expense of producing shows and films, which has limited the number of projects studios can fund. Cheng said the technology would accelerate production but not replace human creativity, stressing that writers, directors, actors and designers would remain involved at every stage.
The move comes amid growing unease in Hollywood, with leading actors voicing fears that AI could erode jobs and reshape the industry.
Amazon has also been pushing AI adoption across its businesses following the largest layoffs in its history, cutting around 30,000 corporate roles since October, including positions at Prime Video. The company pointed to productivity gains from AI as one factor behind the restructuring.
At Amazon MGM Studios, the AI team is focusing on tools that bridge the gap between consumer AI applications and the precision required for cinematic production, including improving character consistency across scenes and integrating with industry-standard creative software.
Hollywood
Paramount eyes $24bn Gulf support to fund Warner Bros Discovery merger: Reports
Sovereign funds line up funding as media giants chase streaming scale
NEW YORK: Paramount Skydance is in talks to secure nearly $24 billion in equity commitments from Gulf sovereign wealth funds to support its planned takeover of Warner Bros. Discovery, according to a WSJ report.
The funding push comes as Paramount Skydance advances its proposed $110 billion deal for Warner Bros. Discovery, which carries an equity valuation of $81 billion and is expected to close in the third quarter of 2026.
At the heart of the financing plan are three major Gulf investors. Saudi Arabia’s Public Investment Fund is expected to contribute roughly $10 billion, while the Qatar Investment Authority and Abu Dhabi-based L’imad Holding are likely to make up the remainder.
Crucially, the proposed investments are structured as non-voting stakes. This means the Gulf backers would not have direct control in the combined entity, a move designed to ease regulatory concerns in the United States. Paramount executives reportedly do not expect the deal to trigger scrutiny from bodies such as the Committee on Foreign Investment in the United States or the Federal Communications Commission.
If completed, the merger would bring together a formidable portfolio of entertainment and news assets, including CNN and CBS. The combined entity aims to better compete in a fast-evolving media landscape where streaming platforms are steadily pulling audiences away from traditional television.
The deal reflects a broader shift in global media, where scale is increasingly seen as essential to survive the streaming wars. By pooling content libraries, technology and distribution, Paramount Skydance and Warner Bros. Discovery are betting on size and synergy to drive future growth.
The involvement of deep-pocketed Gulf investors also underscores the growing role of sovereign wealth in shaping global media consolidation, particularly at a time when high-value deals demand equally large financial backing.
With shareholder votes and regulatory milestones still ahead, the proposed tie-up remains one of the most closely watched media deals of the year. If it clears the final hurdles, it could redraw the competitive map of the global entertainment industry.
