Lionsgate has expanded its partnership with generative AI developer Runway by taking an undisclosed equity stake in the company. Under the agreement, the entities will launch a joint development program to co-create projects using Runway's generative models, beginning with a short-form episodic series. The partnership also extends Runway's tool deployment across Lionsgate's pre-visualization, storyboarding, and final-frame production workflows.
Lionsgate is moving from vendor client to strategic investor, signaling a shift where studios seek direct control over the underlying generative technologies used for their IP. This equity-backed approach contrasts with the recent volatility of simple licensing deals, such as the reported $1 billion Disney-OpenAI partnership that collapsed following the shuttering of Sora. By embedding Runway into its production stack, Lionsgate is attempting to institutionalize AI-driven cost efficiencies while keeping storytelling talent at the center of the workflow. Watch for the debut of the first short-form series as a test case for how audiences and unions respond to content derived from existing franchises via generative models.
Lionsgate's investment in Runway aligns with a broader organizational pivot toward centralized artificial intelligence governance. In February 2026, the studio appointed Kathleen Grace as its first Chief AI Officer to oversee its AI Steering Committee and protect intellectual property during model training. Grace, who previously served as Chief Strategy Officer at Vermillio, task is to translate the studio's catalog of franchises—including John Wick and The Hunger Games—into proprietary models while managing the complex concerns surrounding creative credit and compensation, according to Screen Daily (February 2026).
This strategic deepened investment comes as larger rivals face setbacks or pursue different AI integration paths. Per Business Insider (June 2026), Disney's extensive plans to license over 200 characters for OpenAI's Sora platform were derailed when OpenAI abruptly closed the video generation service to refocus on robotics and enterprise tools. In contrast, Netflix has prioritized acquiring talent-led infrastructure; in March 2026, the streamer purchased InterPositive, an AI filmmaking company founded by Ben Affleck, for a deal Bloomberg estimated at up to $600 million. Unlike Lionsgate's partnership with a general-purpose AI firm like Runway, the InterPositive deal brought a specialized, filmmaker-centric technology team exclusively in-house to Netflix.
Industry analysts note that Lionsgate's approach focuses on 'capital-efficient' content creation. While early implementations since 2024 focused on internal storyboarding and pre-visualization, the new joint development program seeks to produce final consumer-facing IP. However, the path to fully AI-augmented production has not been without friction; reports from The Wrap and Futurism in late 2025 indicated that earlier attempts to train models on the Lionsgate library faced challenges due to the data set size and legal uncertainties regarding the copyrightability of wholly generated outputs.
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