Lionsgate has taken an equity stake in the generative AI video company Runway and plans to pull from its existing catalogue of franchises for an AI short-form series, expanding a partnership the two companies struck in 2024 and cementing the studio’s bullish approach to the technology.

The expansion will also see Lionsgate and Runway start a new development program to create new content — and, thus, intellectual property — using AI, with a rollout planned for multiple projects that incorporate generative AI. The companies will also launch a series of “filmmaker-focused events.”

The financial terms of the deal were not disclosed, though Lionsgate’s equity stake in the AI firm is not a cash investment.

“Runway is a great creative partner, an exciting part of our AI strategy and a valuable driver in expanding our storytelling capabilities,” Lionsgate vice chairman Michael Burns said in a statement. “This is an iterative process. As we continue to expand the use cases of Runway technology across our production operations and introduce its tools to more of our filmmakers, we believe it will help our talent redefine and reshape the art of the possible in their creative endeavors.”

The companies first struck a partnership in September 2024, with Lionsgate employing Runway’s technology for pre-visualization, storyboarding, parts of the post-production process and a potential repurposing of content across rating scales and genres. But Thursday’s announcement marks a dramatic expansion of the deal, potentially allowing characters from the worlds of “The Hunger Games,” “John Wick” or “Twilight” to emerge in an AI project.

“We consistently see that the studios most serious about AI are thinking about it as a creative resource, not a cost-cutting tool,” Runway co-founder and co-CEO Cristóbal Valenzuela said in the statement. “Lionsgate gets that. This expanded partnership will help more stories be told, faster. That’s core to our mission at Runway, and we’re excited to help create the next generation of iconic content.”

Lionsgate’s full-throated embrace of AI has come amid a flurry of consternation surrounding the technology across Hollywood, with companies trying to navigate potential deals with generative firms that both protect their legion of characters while abiding by union contracts governing the use of actors and writers’ work. Lionsgate hired Kathleen Grace in February as its first “chief AI officer,” and Burns said at a conference last week that AI will save the company “tens and tens of millions of dollars a year” in film and TV production costs.

During the Gabelli Sports & Media Symposium in New York, Burns also appeared to hint at the expanded partnership, labeling Lionsgate “an interesting strategic partner” and referencing the company’s work with Runway, which raised money earlier this year at a $5.3 billion valuation.

“I made a joke with [CEO Cristóbal Valenzuela] when we first did our deal with him, I said, ‘You know, maybe someday, we’ll buy you,’” Burns said, according to Deadline. “Now, he’s probably smirking at me, saying, ‘Well, let’s take a look at how our valuation turns out.’”

Lionsgate’s most recent fiscal quarter, from January through March, saw the company’s overall revenues hit $906.5 million, up from $865.6 million year-over-year, and a net profit of $70.2 million, up from a $117.4 million loss in the same quarter last year.