AI video startups target full-scale film production

AI video startups are expanding their capabilities from simple clip generation to full-scale film production workflows. Higgsfield AI recently announced the production of a 95-minute AI-generated film, ‘Hell Grind’, completed in just 14 days with a reported budget of $500,000. The company, which reportedly holds a $5.4 billion valuation, utilized proprietary tools for character consistency and scene composition.

Other major players are also scaling their industrial applications. Runway secured $315 million in Series E funding to develop next-generation world models, partnering with Lionsgate to integrate AI into pre-visualization and storyboarding. Luma introduced ‘Luma Agents’, a workflow designed to coordinate text, image, video, and audio generation through natural language commands.

Industry analysts at McKinsey estimate that by 2030, approximately $10 billion—or 20%—of original US film and TV content spending could be influenced by AI. While tech companies frame these tools as assistants for human creators, industry professionals have expressed concerns regarding the displacement of entry-level and mid-level roles, such as animators and concept artists. In response to these shifts, SAG-AFTRA has included provisions in its 2026 agreements to regulate the use of digital replicas and synthetic performers.