Lionsgate Takes Equity Stake in AI Video Platform as Burns Projects Tens of Millions in Annual Savings

Lionsgate Vice Chairman Michael Burns said the studio will save "tens and tens of millions of dollars a year" through AI across production and FAST channel curation. Burns made the statement at the Gabelli Sports and Media Symposium in New York on June 12, the same day Lionsgate confirmed it has taken an equity stake in a generative AI video platform it has partnered with since 2024.

From Content Deal to Equity Stake

The move marks a shift in how Lionsgate has structured its AI relationship. A 2024 training agreement gave the platform rights to the studio's library for model development. Taking an equity position makes Lionsgate a financial stakeholder in the platform's growth, not just a content supplier.

The platform is valued at $5.3 billion. For a studio of Lionsgate's scale, an equity position at that valuation represents a meaningful financial commitment beyond the operational savings Burns outlined.

IP Library as Content Engine

Lionsgate plans to use its existing catalogue to generate short form video series for streaming and FAST markets. The studio also announced a new development program to generate original IP using AI, separate from any existing library titles.

The original IP program is a different kind of bet. Most studio AI announcements focus on using AI to cut costs on productions already in development by human writers and directors. Generating net new intellectual property is a more fundamental use of the technology.

The FAST Channel Case

Burns specifically named FAST channel curation alongside production savings as a primary AI cost reduction target. FAST channels operate on volume, often distributing across dozens of individual channels simultaneously, which makes per hour production cost a direct margin constraint.

The economics differ from theatrical or premium streaming. A tool that cuts the cost of producing 100 hours of content delivers savings that compound across the full volume, not just a single title.

Two Years of AI Commitment

The equity stake is the latest step in a strategy Lionsgate has built openly over two years. At CES 2026, the studio laid out its AI production roadmap, and earlier this year it named Kathleen Grace as Chief AI Officer, one of the first such appointments at a major studio.

Burns' statement at the Gabelli Symposium is the first time Lionsgate has attached a specific financial projection to that strategy. Moving from a licensing deal to an equity position signals the studio is treating its AI partnership as a long term financial asset, not just a production shortcut.

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Sources

Variety | Deadline | The Hollywood Reporter