Lionsgate acquires Runway equity stake to co-develop AI-driven episodic series
Lionsgate has acquired an equity stake in the AI firm Runway, deepening a partnership that began in 2024. The companies will jointly develop new IP blending AI and content, starting with a shortform episodic series leveraging Lionsgate's existing IP and Runway's generative models. Lionsgate will also be a presenting partner at the Runway AI Festival and collaborate on other filmmaker-focused events.
Key Takeaways
- Lionsgate acquired an equity stake in Runway following a partnership that began in September 2024.
- The first co-developed project is a short-form episodic series based on Lionsgate’s library of roughly 20,000 titles.
- Lionsgate will serve as a presenting partner at the Runway AI Festival in June 2026.
- The studio appointed Kathleen Grace as its first-ever Chief AI Officer in February 2026 to oversee these initiatives.
Why It Matters
Lionsgate is moving from vendor experimentation to structural integration by taking an ownership stake in AI infrastructure. While major peers like Disney saw high-profile partnerships with OpenAI's Sora collapse, Lionsgate’s equity play positions them to influence the development of models specifically trained on studio-grade datasets. For the broader ecosystem, this indicates a shift where studios are not just licensing content to AI firms but are acting as strategic co-developers to reduce high production costs. Watch for the credit and compensation frameworks Lionsgate implements on its first AI-driven series, as these will likely set the baseline for future union and talent negotiations.
Additional Context
The expansion follows a volatile period for AI-studio relations. According to reports from the Financial Times and Reuters in March 2026, OpenAI abruptly shuttered its Sora video generation platform, effectively terminating a landmark $1 billion licensing deal with The Walt Disney Company. That partnership, announced in late 2025, intended to allow fans to generate social videos using more than 200 characters from Marvel, Pixar, and Star Wars. OpenAI reportedly abandoned the project to focus computing resources on robotics and more lucrative corporate tools ahead of an anticipated IPO. In contrast, other major players are pursuing vertically integrated acquisitions rather than licensing deals. In March 2026, Netflix acquired InterPositive, an AI startup co-founded by Ben Affleck, for a deal valued at approximately $600 million per Bloomberg. Unlike generative models that create content from scratch, InterPositive’s technology focuses on post-production efficiency—handling tasks like wire removal, relighting, and shot reframing. Netflix noted it intends to use these tools exclusively for its internal production partners rather than licensing them commercially. Lionsgate’s strategy has also matured through executive recruitment. Per Variety in February 2026, the studio hired Kathleen Grace as Chief AI Officer to bridge the gap between technical execution and filmmaker protection. Grace previously served as Chief Strategy Officer at Vermillio, a platform focused on authenticating and compensating IP owners for AI model training. Her mandate includes identifying production efficiencies and establishing 'guardrails' for talent—a critical focus as Hollywood unions continue to push for stricter AI provisions in collective bargaining agreements.
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