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Big studio exec axes $800 Million studio project after seeing OpenAI SORA

As AI gets better at generating video content movie studio bosses are starting to think jobs will be automated and lost and are ratcheting back investments.

Key takeaways

  • OpenAI’s recent demonstration of its new video-generator tool, Sora, caused a lot of hand-wringing about potential job losses, and now a TV and movie mogul is weighing in.
  • Tyler Perry says he has halted an $800 million expansion of his Atlanta studio complex that would have added a dozen soundstages.
  • Seeing the Artificial Intelligence (AI) tool in action prompted the move, he said.
Cite or link to this article

Griffin, M. (2024) 'Big studio exec axes $800 Million studio project after seeing OpenAI SORA', 311 Institute, 24 July. Available at: https://www.311institute.com/big-studio-exec-axes-800-million-studio-project-after-seeing-sora/ (Accessed: 1 October 2026).

OpenAI’s recent demonstration of its new video-generator tool, Sora, caused a lot of hand-wringing about potential job losses, and now a TV and movie mogul is weighing in. Tyler Perry says he has halted an $800 million expansion of his Atlanta studio complex that would have added a dozen soundstages. Seeing the Artificial Intelligence (AI) tool in action prompted the move, he said.

“All of that is currently and indefinitely on hold because of Sora and what I’m seeing,” he told the Hollywood Reporter on Thursday. “I had gotten word over the last year or so that this was coming, but I had no idea until I saw recently the demonstrations of what it’s able to do. It’s shocking to me.”

OpenAI CEO Sam Altman revealed the first look at the Beta version of Sora a little while ago, saying it was available to a “limited number of creators” for now. It lets users, with nothing more than a simple text prompt, create 60-second videos so realistic that most people wouldn’t guess they were generated with artificial intelligence.

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As a business owner, Perry sees Sora’s potential in cutting costs. It might become unnecessary to build sets or travel to locations, for instance. But he’s also an actor and filmmaker, and in terms of the threat to film and TV jobs, “there’s got to be some sort of regulations in order to protect us,” he said. “If not, I just don’t see how we survive.”

Perry said that as he watched demos of Sora, his mind turned to workers in his industry.

“It makes me worry so much about all of the people in the business,” he said. “Because as I was looking at it, I immediately started thinking of everyone in the industry who would be affected by this, including actors and grip and electric and transportation and sound and editors, and looking at this, I’m thinking this will touch every corner of our industry.”

Post on X

Prompt: “Several giant wooly mammoths approach treading through a snowy meadow, their long wooly fur lightly blows in the wind as they walk, snow covered trees and dramatic snow capped mountains in the distance, mid afternoon light with wispy clouds and a sun high in the distance… pic.twitter.com/Um5CWI18nS

OpenAI (@OpenAI) February 15, 2024

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He added, “I’m looking at my business and the bottom line, but I’m also very concerned about all the people that I have trained and brought up in this industry,” he said. “I’m concerned about what will happen to them.”

Sora is not the first tool of its kind, but the quality of the videos it generated alarmed Perry.

Last year, an AI-generated video showing Will Smith eating spaghetti went viral for another reason: It was horrific, with the actor’s eyes and mouth changing form as he pushed food into his face.

“The technology’s moving so quickly,” said Perry. “I feel like everybody in the industry is running a hundred miles an hour to try and catch up, to try and put in guardrails and to try and put in safety belts to keep livelihoods afloat.”

Tools like Sora will be a “major game-changer,” he said, because of simple economics. If a pilot that would normally cost $15 million or $35 million can instead be done at a fraction of the cost, like $1 million or even much less, companies will gravitate to the less expensive option, he noted. “So I am very, very concerned that in the near future, a lot of jobs are going to be lost,” he said. “I really, really feel that very strongly.”

FAQ

Why does this matter?

As AI gets better at generating video content movie studio bosses are starting to think jobs will be automated and lost and are ratcheting back investments.

Matthew Griffin

About the author

Matthew Griffin Founder, 311 Institute

Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath."

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Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath." 15-time best selling author of the "Codex of the Future" series, Matthew is the Founder and Futurist in Chief of the 311 Institute, a global Futures and Deep Futures advisory firm working with royal households, world leaders, G7, G20, and G77 governments, NGOs, and multi-national mid and mega cap firms to help them explore, shape, and lead the next 50 years of business and society.

An award-winning YouTube creator with over a million followers, with an unrivalled global reach and impact, Matthew is a highly sought-after international keynote speaker, lecturer, and mentor who collaborates with global leaders through the United Nations Alliance of Civilizations (UNAOC) and United Nations General Assembly (UNGA) to shape pivotal initiatives such as the UN’s AI for Humanity program, the United Nations Conference of the Parties (UN COP), and the World Economic Forum in Davos.

As the former Global Head of Cloud, National Security, and Enterprise Sales for companies including Atos, Dell-EMC, and IBM, Matthew has a proven track record of building multi-billion dollar business units and turning failing divisions into market leaders. His ability to identify, analyse, and communicate the implications of hundreds of emerging technologies and trends is unparalleled, and his insights are trusted by many of the world’s most respected organisations, including ABB, Accenture, Adidas, AON, ARM, BCG, Centrica, Citi, Coca-Cola, Dentons, Deloitte, Dow Jones, EY, Google, KPMG, Lego, Legal & General, LinkedIn, Microsoft, PepsiCo, Qualcomm, RWE, Samsung, Siemens AG and Siemens Energy, T-Mobile, UBS, VISA, Walmart, Workday, Worldpay and many others.

Regularly featured in the global media including the AP, BBC, Bloomberg, CNBC, Discovery, Forbes, Khaleej Times, Telegraph, TIME, ViacomCBS, WIRED, and the WSJ, Matthews mission is to help organisations create a fair and sustainable future whose benefits are shared by everyone irrespective of their ability, background, or circumstances.

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Sources and further reading

  1. studio complex tylerperrystudios.com
  2. Tyler perry ai alarm 1235833276 hollywoodreporter.com
  3. View on X → twitter.com
  4. changing form twitter.com

Source: first published by the 311 Institute on 24 July 2024. Cite as: Griffin, M. (2024). Big studio exec axes $800 Million studio project after seeing OpenAI SORA. 311 Institute. https://www.311institute.com/big-studio-exec-axes-800-million-studio-project-after-seeing-sora/

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