Google invests $75M in A24 for DeepMind AI partnership

Google's $75 million investment in A24 marks the search giant's first studio stake and a test of whether Hollywood will embrace AI on its own terms.

Google is investing about $75 million in independent film studio A24 through a multiyear artificial intelligence research partnership with its DeepMind unit, the company's first-ever investment in a movie studio.

"We think there are better uses that preserve creative control and support risk-taking," Scott Belsky, an A24 partner who oversees its technology and innovation work, said. The new tools "won't look anything like the prompted generation type of AI that people feel uncomfortable with."

A24 Labs, a 20-person team Belsky joined from Adobe last year, is already developing an application for AI-generated storyboards — roughly drawn drafts that can identify production problems before filming begins. The deal is nonexclusive and doesn't give Google access to A24's film or television library. A24 last raised funds in 2024 at a $3.5 billion valuation in a round led by Thrive Capital, with Google's investment roughly matching Thrive's contribution.

The partnership represents a significant bet for both sides. For Google, it opens a channel into Hollywood at a time when studios have largely kept AI at arm's length — Disney ended its OpenAI partnership last year after the Sora video tool was shut down, and Netflix's acquisition of Ben Affleck's AI startup remains an exception. For A24, the deal risks alienating the young, artist-aligned audience that has made it one of the few studios besides Disney that draws moviegoers based on its brand alone; more than half of moviegoers consider themselves A24 fans, according to NRG data.

A24's revenue has more than doubled in the past two years as it expanded into unscripted television, music and theater while increasing film budgets. The studio is currently producing its most expensive movie ever, a roughly $175 million adaptation of the videogame "Elden Ring" directed by Alex Garland, who previously made "Civil War" and "Ex Machina" for A24. The studio has also been meeting potential strategic investors overseas to help produce international content and has established a UK office.

For DeepMind, the partnership offers a proving ground for AI tools designed for creative professionals rather than content generation. "We believe breakthroughs happen when you get technology into the hands of the best minds in the field," Eli Collins, a vice president of product for DeepMind, said. The approach contrasts with generative AI models that have drawn lawsuits from studios and criticism from filmmakers who view the technology as a threat to creativity.

The alliance also carries subtext beyond the technology. A24's backer Thrive Capital, led by Josh Kushner, holds a seat on OpenAI's board and ranks among its largest investors. A24 was among the distributors that passed on Luca Guadagnino's "Artificial," a film about OpenAI Chief Executive Sam Altman that Amazon MGM dropped after announcing a $50 billion cloud partnership with the company.

Alphabet shares fell 5.56 percent on the day, though the decline was tied to broader market moves rather than the A24 deal. For investors, the partnership signals Google's intent to differentiate its AI offerings by targeting verticals where competitors have yet to establish a foothold. The $75 million investment is negligible for a company with about $350 billion in annual revenue, but the strategic implications could be larger if the tools gain adoption across Hollywood's production pipeline.

This article is for informational purposes only and does not constitute investment advice.