Key points
- Google pitched Disney, Universal and Warner on AI licenses
- Some studios asked to waive their right to sue Google
- $40 million a character floated only as an estimate
- NBCUniversal says it is not in active talks
Google (GOOGL) executives have approached Disney (DIS), Universal, Warner Bros. Discovery (WBD) and other studios about licensing characters and film libraries for its AI models, the Los Angeles Times reported on Monday, August 31, citing three people familiar with the conversations. No agreement has been reached.
A figure of about $40 million per character on average came up during the talks, one person familiar with them told the paper, with a 100-character deal running into the multiple billions. That's an estimate mentioned in the discussions, not an agreed price or a confirmed offer from Google.
Google, Warner Bros. Discovery and Disney declined to comment to the Times. An NBCUniversal spokesperson said the company isn't in active conversations with Google about licensing its intellectual property. Universal is owned by Comcast (CMCSA).
What did Google ask for?
Some studios were asked to waive their right to sue Google as a condition of joining a YouTube likeness-detection program, the Times reported. The program flags AI-generated videos that use a studio's characters or performers and gives the rights holder the option to monetize them instead of taking them down. YouTube has pitched it to talent agencies as well as studios.
YouTube has also discussed sharing advertising revenue from AI-generated videos with rights holders and talent who choose to leave those videos on the platform, according to the report.
An unnamed insider told the paper that Google's models cannot be used for large-scale film and television production unless they are fine-tuned on "highly dynamic content and metadata that only Hollywood studios have."
Why have the deals stalled?
The Times cited the legal complexity of AI licensing and sensitivity about how talent and unions would react. Under their contracts, studios must notify SAG-AFTRA of new AI licensing arrangements. Duncan Crabtree-Ireland, the union's national executive director, told the paper: "The companies largely are moving carefully in this area."
Disney sent Google a cease-and-desist letter on December 10, 2025, over the use of its characters in the Veo and Imagen models, Variety reported, the same week it announced a $1 billion investment in OpenAI and a license putting more than 200 characters into the Sora video app. That agreement ended in March when OpenAI shut Sora down. Warner Bros. Discovery is mid-sale to Paramount Skydance at $31 a share in cash, with a close targeted by September 30. Sony and Warner's music arms sued Anthropic's founders personally last week over training data.
What has Google already done in Hollywood?
Google invested $75 million in the independent studio A24 in June through a DeepMind research partnership. A24 partner Scott Belsky said the arrangement is not an IP or data-training deal, per Deadline. Google has also partnered with director Darren Aronofsky's venture Primordial Soup. Netflix bought Ben Affleck's production technology company InterPositive for $587 million in March, the Times noted.
Where are the stocks?
| Company | Sept. 1 close | Day change |
|---|
| Alphabet (GOOGL) | $335.02 | -1.3% |
| Disney (DIS) | $106.23 | -1.2% |
| Warner Bros. Discovery (WBD) | $28.33 | -0.7% |
| Comcast (CMCSA) | $26.32 | -1.1% |
All four fell with the broader market on Tuesday, when the S&P 500 lost 0.7%. Alphabet's stock page carries the chart and the insider and Congress trade history.
