Lionsgate Takes Equity Stake in Runway AI, Plans IP-Based Series

Lionsgate has acquired an equity position in Runway, the generative AI video company, and will use its film and television catalog to produce an AI-powered short-form series. The move significantly expands a partnership the two companies established in September 2024 and positions Lionsgate as one of Hollywood's most aggressive adopters of generative AI technology.

The expanded agreement includes a new development program to create original content using AI tools, with multiple projects planned for rollout. Lionsgate and Runway will also host filmmaker-focused events, though the studio has not disclosed which of its properties—including franchises like "John Wick," "The Hunger Games," "The Twilight Series," and "Saw"—might appear in AI-generated projects. The equity stake does not involve a cash investment, according to the companies.

Why it matters

Lionsgate's deepening commitment to AI reflects a strategic bet that generative tools can unlock new revenue streams from existing intellectual property while reducing production costs. Vice chairman Michael Burns stated at a recent conference that AI will save the company "tens and tens of millions of dollars a year" in film and TV production. This approach contrasts with the cautious stance many Hollywood studios have taken amid union concerns about AI's impact on creative labor and intellectual property rights.

From production tool to content engine

When Lionsgate first partnered with Runway last fall, the focus was on using AI for pre-visualization, storyboarding, and post-production tasks. The new arrangement transforms that relationship into something more ambitious: using AI to generate finished content that audiences will consume directly.

"Runway is a great creative partner, an exciting part of our AI strategy and a valuable driver in expanding our storytelling capabilities," Burns said in a statement. He characterized the process as iterative, with the studio introducing Runway's tools to more filmmakers to "redefine and reshape the art of the possible in their creative endeavors."

Runway co-founder and co-CEO Cristóbal Valenzuela emphasized that the partnership treats AI as a creative resource rather than simply a cost-reduction measure. "This expanded partnership will help more stories be told, faster," he said.

Strategic positioning and financial context

Lionsgate hired Kathleen Grace as its first chief AI officer in February, signaling the technology's importance to the company's future. At the Gabelli Sports & Media Symposium last week, Burns joked about potentially acquiring Runway, though the AI firm's recent $5.3 billion valuation makes such a scenario unlikely in the near term.

The studio reported revenues of $906.5 million in its most recent fiscal quarter (January through March), up from $865.6 million year-over-year, with net profit of $70.2 million compared to a $117.4 million loss in the same quarter last year.

The partnership comes as Hollywood grapples with how to integrate generative AI while respecting union contracts governing actors' and writers' work. Lionsgate's approach—combining cost savings with new content creation—may serve as a test case for how major studios balance technological opportunity with creative labor concerns.

These details were first reported by Variety.