Lionsgate and Runway Forge New Paths in AI-Generated Entertainment

By Patricia Miller

Jun 11, 2026

2 min read

Lionsgate and Runway are collaborating to create AI-generated films, leveraging existing properties while addressing emerging legal challenges.

#What is the New Collaboration Between Lionsgate and Runway?

The recent partnership between Lionsgate and Runway aims to innovate in the entertainment sector by developing new intellectual property and utilizing Lionsgate’s extensive catalog for artificial intelligence-generated films and series. This initiative marks a significant evolution in their collaboration.

#How Did This Partnership Evolve?

Initially, the partnership began in September 2024, focusing on creating a custom AI video model trained on Lionsgate’s library, which comprises over 20,000 titles. This initial agreement aimed to optimize production workflows such as storyboarding and visual effects through AI-powered tools.

Lionsgate's Vice Chair recognized the potential of this technology to significantly reduce production expenses, potentially saving millions of dollars.

#What Are the Goals of This New Initiative?

The collaboration has progressed from enhancing production efficiencies to front-facing content creation. The joint development program focuses on generating new intellectual properties with generative AI while also reimagining existing properties. This includes adaptations suitable for younger audiences and alternate versions tailored for various platforms.

Runway recently secured $308 million in a Series D funding round, bringing its funding total to over $500 million and increasing its valuation to around $5.3 billion. This growth is supported by major players like Google and Nvidia, indicating strong market confidence.

#What Challenges Are Arising in AI Content Creation?

As the partnership has evolved, it has faced some critical challenges. By mid-2025, the capabilities of the AI model began to fall short of the partnership's aspirations. Furthermore, the legal landscape concerning copyright and intellectual property rights has become complicated, especially regarding the production of alternate versions of existing properties. This raises critical issues about ownership and the rights of performers involved in these projects.

Issues surrounding whether performers' likenesses can be algorithmically altered and if directors maintain creative control over derivative works present challenges. Additionally, there’s uncertainty around how industry unions will respond to AI-generated adaptations of previously negotiated projects.

Notably, there are no indications that Lionsgate has made an equity investment in Runway; their collaboration appears primarily centered on data sharing and licensing agreements rather than equity participation.

Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.