Lionsgate acquires Runway equity stake to co-develop AI-generated series
Lionsgate has extended its investment in generative AI firm Runway, agreeing to co-develop a slate of projects starting with a short-form episodic series using existing Lionsgate IP and Runway’s AI technology. This expands a previous partnership where Lionsgate utilized Runway's tools for pre-visualization, storyboarding, and final-frame production.
Key Takeaways
- Lionsgate obtained an equity interest in Runway without a cash injection as part of a strategic IP development agreement.
- The partnership marks a shift from using AI solely for pre-production to generating final-frame episodic content.
- First project under the new slate will be a short-form series based on existing Lionsgate film and television franchises.
- The deal follows Lionsgate’s appointment of Kathleen Grace as Chief AI Officer in February to lead studio-wide AI integration.
Why It Matters
Lionsgate is moving from experimental AI testing to a full-scale creative partnership, signaling that major studios now view generative video as a primary content source rather than just a cost-saving VFX tool. By leveraging its 20,000-title library to train models for new IP, Lionsgate is attempting to institutionalize AI production within a traditional studio model. This vertical integration of tech and IP sets a precedent for how standalone studios may compete with tech giants by turning legacy catalogs into high-velocity content machines. Watch for the debut of the first short-form series to determine if AI-generated narratives can maintain the quality standards required for established Hollywood franchises.
Additional Context
The expansion follows a volatile period for Lionsgate as it navigates its recent separation from the Starz cable and streaming network. Per Deadline and TheWrap in May 2025, the Supreme Court of British Columbia approved the full split of Lions Gate Entertainment Corp. into two independent, publicly traded companies. This move was intended to help the studio operate strictly as a content house and monetize its extensive library without the overhead of a large media network. The appointment of Kathleen Grace as Chief AI Officer in February 2026 further solidified this strategy. Grace joined the studio from Vermillio, an AI platform designed to protect and license intellectual property, which aligns with Lionsgate’s goal of utilizing its 20,000-title catalog for AI training while maintaining creator safeguards. While Lionsgate is an early adopter, other major streamers have faced setbacks in the generative video space. Per C21Media in June 2026, a high-profile deal between Disney and OpenAI to use the Sora video model reportedly collapsed after the tool was abruptly shuttered. Meanwhile, Netflix has taken a different route by acquiring tech firms like Ben Affleck’s InterPositive to build internal production capabilities. Against this backdrop, Lionsgate’s equity stake in Runway suggests a more collaborative approach, embedding the studio directly into the growth of the AI provider. According to recent SEC filings, Lionsgate reported record library revenue of over $1 billion for fiscal year 2026, providing a significant data moat for Runway’s generative models to ingest as they move from storyboarding tools to final-frame content generation.
Read full article at broadcastnow.co.uk