Google puts $75m into Backrooms maker A24 as part of AI research, development pact

Google’s research lab DeepMind is investing around US$75m in New York-based A24 (Backrooms, Euphoria) through a partnership that further expands the ties between AI companies and Hollywood.

A24’s hit horror movie Backrooms

Through the multi-year, non-exclusive deal, the companies said they will help filmmakers develop new workflows and techniques across multiple projects and will ensure the “tools of the future are shaped by the creators who use them.”

Financial terms of the “deep research and development collaboration” were not disclosed, but the Wall Street Journal, which was first to report on the deal, said the investment was around US$75m.

This marks the first time Google has acquired an equity stake in a Hollywood studio, although the tech corporation has seen its presence in the entertainment space continue to grow over the past two decades with YouTube.

“A24 and its filmmakers can help shape new technology in service of their vision and expand their storytelling possibilities. This hands-on collaboration provides Google DeepMind with invaluable feedback and guidance from leading artists,” said the companies.

The deal would appear to be different to others struck between US studios and AI companies, given that DeepMind will not be able to mine A24’s library to train AI video models. However, DeepMind said while the initial focus is on “bridging the gap between cutting-edge technology and next-generation entertainment, the specific goals, technical outputs and creative milestones of this initiative will evolve over time.”

The announcement comes as deal activity between Hollywood and AI outfits continues to heat up. Earlier this month, Lionsgate acquired an undisclosed equity stake in Runway, while Netflix bought Ben Affleck’s AI filmmaking company earlier this year and Disney has said it will “continue to engage with AI platforms” after its deal with OpenAI fell apart with the closure of text-to-video generation tool Sora in March.

A24 has raised capital on several occasions over the past four years, including a US$225m funding round led by Stripes in 2022 and another round led by Josh Kushner’s Thrive Capital in 2024. The New York-based company is also riding a wave of momentum after its psychological horror film Backrooms became its biggest-ever performer at the box office, earning over US$270m to date on a budget of US$10m.

“We believe the best way to develop tools that empower artists is to work directly with them. By collaborating with filmmakers and industry leaders like A24 from the beginning, we can build new AI features to support artists in authentic, meaningful storytelling that helps enable their creative vision,” said Google DeepMind co-founder and CEO Demis Hassabis.