AI-generated video production is gaining momentum as Hollywood and startups embrace the technology. Promise, an AI studio in Culver City, is filming the horror movie 'Touch Grass' with a budget in the low millions. The soundstage consists of white sheets in an office corner, where AI overlays actress Tori Thomas's movements with real-time generated grass using Seedance 2.5, a Chinese model released this month. The entire scene appears instantly on the director’s monitor, allowing quick scene changes to an underground cave. According to The Guardian, Promise is backed by Google, Silicon Valley investors, and Disney, making it part of a growing number of AI studios in Hollywood. Co-founder George Strompolos estimates that hybrid productions combining human actors and AI technology are 20 to 50 percent cheaper than conventional films, which could make filmmakers less dependent on major studios.
The AI video market is also seeing significant investment and growth. Higgsfield, a video startup, has raised $400 million at a valuation of $5.4 billion, with investors including DST Global, Goldman Sachs, Liberty Global, and Intel. Just eight months earlier, the valuation stood at $1.3 billion, while annualized revenue rose from $20 million to $700 million within a year. Notably, the customer base has shifted, with business customers now making up the majority of revenue. According to founder Alex Mashrabov, brands like Dollar Shave Club are using the platform to produce several marketing videos per day, whereas in the past they would create just a single campaign video.
The rise of AI video has also led to the creation of synthetic personalities. Inception Point AI manages over 100 AI personas, each with its own niche, ranging from British gardening expert Nigel Thistledown to DIY influencer Lila Walker. Each character receives a 15- to 30-page 'character bible' complete with fictionalized life stories. CEO Jeanine Wright says that just 20 listeners per episode are enough to turn a profit. Similar trends are emerging in fashion and music, where AI models and avatars are reaching mainstream audiences. Spotify plans to label such profiles with an 'AI Persona' tag in the future.
Source: thedecoder
