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Technology · 2026-10-18 · Morning briefing

AI film startups with $2bn backing cluster in Culver City

A cluster of artificial intelligence filmmaking startups is taking root in Culver City, drawn by its proximity to major studios like Sony and Amazon. AI media companies with an estimated $2 billion in backing have converged on the city. They include Luma AI, a startup valued at $4 billion which opened a facility there, and TrueShort, which has raised $17 million.

These firms are developing generative tools for commercials and film effects. TrueShort, for instance, reports it can produce a 10-minute episode in about 10 days for around $10,000. The company employs 45 people, 75% of whom are creatives such as filmmakers and editors, not just engineers.

The influx has stoked fears of job displacement among Hollywood unions. The actors’ guild, SAG-AFTRA, secured protections against fully synthetic performers in its contract this year. Meanwhile, some industry veterans are making the switch; Alex Cancado, who worked on visual effects for over 80 movies, now works in the AI division at Amazon MGM Studios.

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