The Hollywood-Silicon Valley Showdown: Sam Altman's Bold Move
A tale of tech disruption and industry backlash. In the heart of September, as OpenAI geared up to unveil its new social media app for Sora, a video generator, rumors of a Hollywood upheaval began to circulate. A talent agency, privy to the impending news, was perplexed by the silence from Sam Altman's startup, especially regarding the C-suite. But the real drama was yet to unfold.
The initial talks between the agency and OpenAI were fiery. The agency exec accused OpenAI of being deliberately misleading, while OpenAI's team, including CFO Brad Lightcap and product leads, painted a rosy picture of an opt-in system to safeguard talent's intellectual property and likenesses. But here's where it gets controversial—the promises didn't align with reality.
As the truth emerged, it became clear that OpenAI's messaging was inconsistent. Some were assured of an opt-in requirement for both likenesses and intellectual property, while others heard the opposite or were left in the dark. This left Hollywood executives scratching their heads.
WME, representing stars like Matthew McConaughey and Ryan Reynolds, received a startling revelation: their clients would need to explicitly tell OpenAI to exclude their faces and voices from the platform. Imagine the backlash if agents encouraged clients to join Sora! The WME partner's concern was palpable: "We have a vast client roster. If they all opt out, what's the point?"
Just before Sora 2's release, WME was assured that likenesses would require permission. But when the app launched, it allowed users to create content featuring Hollywood studios' prized properties. Studios had to flag these properties individually, a bold move by OpenAI that encroached on the entertainment industry's turf.
On October 3rd, Altman announced a half-hearted opt-in system. By then, the damage was done. Sora was generating clips from popular movies, TV shows, and games. It had become the App Store's most popular free option.
The agency exec saw this as a calculated strategy: "They knew the risks and released it without safeguards." Legal discussions are underway, and litigation looms. OpenAI's bold move has Hollywood in a frenzy.
The Motion Picture Association, usually tight-lipped, publicly condemned OpenAI, joined by CAA and UTA. WME's Chris Jacquemin circulated a memo, stating that none of their clients were participating in Sora 2. Behind the scenes, confusion and frustration reign over the opt-out process, which some see as mere lip service.
Hollywood execs are hesitant to engage with OpenAI, fearing the onus will be on them to protect their IP. Disney, in a strongly worded letter, asserted its rights under copyright law without needing to opt out. The studio, along with others, has already sued AI firms for copyright infringement, setting a precedent.
OpenAI's leaders, including Shetty and McKean, have long favored asking for forgiveness over permission. This strategy has paid off for ChatGPT, generating billions in revenue. But with Sora, the stakes are higher. Its success relies on recognizable content, as seen with Midjourney's brief attempt at safeguards. Altman's plan hinges on studios' willingness to license their IP.
Altman and Shetty envision a future of 'interactive fan fiction,' claiming it will benefit rightsholders. But Hollywood is locked in a battle, reminiscent of its struggle against internet piracy. OpenAI approaches these talks as an adversary, not a partner.
The WME partner's frustration is palpable: "They burned the bridge before even discussing partnership." Agencies resent studios' passivity towards Silicon Valley's intrusion, as AI companies have been training on Hollywood content for years. Creators, often not owning the IP in their works, have limited recourse.
Could earlier legal action have changed the game? Might studios have secured deals forcing AI firms to purge stolen content from their libraries? For now, studios prioritize defending their IP, but the potential for AI partnerships remains. It's a delicate balance, as legal battles may impact future plans for AI integration.
Disney might create its own app, while others eye dealmaking. The studios' and agencies' interests diverge. The WME partner highlights the dilemma: suing could sever potential partnerships. Another exec is less forgiving, emphasizing the need to protect clients and address emerging issues.
This saga, unfolding in the October 15th issue of The Hollywood Reporter, sparks a debate: How should Hollywood navigate the AI revolution? Is litigation the answer, or is collaboration possible? Share your thoughts in the comments below!
