Netflix Quietly Tests Runway AI

The streaming giant Netflix has started testing AI video tools from Runway AI, based in New York, which indicates a potential shift in the way major studios will produce content..

Bloomberg, which first reported the story, cited a source familiar with the matter who said, “Netflix is currently using the New York-based startup’s tools in content production.” Netflix declined to comment, and so did Runway.

Disney has also tested the software but said it “has no plans to integrate Runway’s software into its content production pipeline at this time,” as reported by Bloomberg.

The company gained popularity after releasing its first AI video tools in 2023, which generated short video clips from text inputs, as noted by Bloomberg. The company developed its technology to enable more sophisticated applications, including animation and special effects.

Last week, Runway introduced Act-Two as its new motion-capture model, which enables users to transfer real human movements to animated characters.

Bloomberg reports that Netflix co-CEO Ted Sarandos confirmed in a Thursday earnings call that the company is using AI for special effects. He cited a collapsing building scene in the upcoming Argentinian series El Eternaut, noting the shot was made “more quickly and cheaply” with AI than traditional tools. However, he did not say whether Runway was involved in that particular scene, and Bloomberg’s sources say it was not.

Bloomberg says that Runway achieved a $3 billion valuation while receiving $545 million in funding, which placed it ahead of numerous other AI startups. Through its partnership with Lionsgate, the company obtained access to studio content for model training, which solidified its position in AI-driven media production.

Still, the entertainment industry is closely monitoring AI developments, as many film and TV professionals worry about the technology’s threat to their jobs, especially with studios exploring lower-cost alternatives to human labor.