In February, executives from OpenAI visited Los Angeles, hoping to strike deals with major Hollywood studios. They left empty handed. The studios declined partnerships to use Sora, the company’s AI–powered video generation tool, Bloomberg reported, citing concerns over how OpenAI would use their data and potential backlash from unions worried about job losses following the 2023 Hollywood strikes.
OpenAI’s failure to win over Hollywood exposes a deeper issue for the company: It seems unwilling to prove it can work within the contracts, licensing agreements, and labor protections that have governed the entertainment business for more than a century. OpenAI isn’t just alienating the $100 billion-plus entertainment business—it is missing an opportunity to show other industries that it’s capable of building viable, long-term partnerships.
