finance
Moonvalley Raises $84 Million for AI Tools in Hollywood Special Effects
AI startup Moonvalley has secured $84 million in funding to develop tools for Hollywood special effects. Major studios like Netflix and Amazon are adopting AI for effects and viewing enhancements amid production challenges from 2025 Los Angeles wildfires. A recent survey shows mixed viewer opinions on AI use in entertainment.
Apr 24, 10:41 AM·1m read1 source
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Moonvalley raised $84 million to develop AI tools used in Hollywood special effects, as studios seek ways to make projects faster and cheaper amid tighter budgets. Wildfires in Los Angeles affected Hollywood production in 2025, with one producer considering relocation due to the fires that year.
Netflix uses AI for elaborate special effects, while Amazon employs the technology to improve the viewing experience.
Lionsgate partnered with startup Runway to train an AI model on its library, enhancing tools across the production cycle. A YouGov survey in early October found viewers were mixed on the use of AI in entertainment. Business Insider reported that many in the industry are worried about tech giants using AI to appropriate intellectual property, with studios taking issue with OpenAI's Sora generating videos that encroach on copyrighted characters.
Studios must also be sensitive to talent's fears of being supplanted by AI, as well as audiences' attitudes toward the technology. Business Insider interviewed founders of startups behind tools to disrupt traditional TV and filmmaking.
