Tech Giants Push for AI Copyright Exemptions, Citing China’s Threat. The Trump administration asked them to comment on a new AI policy, having overturned the weak one Biden had put in place by executive order. Tech companies say training AI models on copyrighted content constitutes fair use, arguing that restrictive laws would hand China an insurmountable advantage. OpenAI, Meta, and Google have all cited the rapid rise of DeepSeek, a Chinese open-source AI model, to justify their position. “If the PRC’s developers have unfettered access to data and American companies are left without fair use access, the race for AI is effectively over,” OpenAI wrote in its submission to the White House. Critics, including Hollywood unions and over 400 high-profile creators, argue that this would allow AI firms to profit from unlicensed material without compensating those who created it. Big tech wants nothing less than a preemptive pardon for copyright infringement. With the administration’s open contempt for the media, in particular the NY Times (who is suing Open AI), the influence of Elon Musk, who owns Xai, and Trump’s personal vendetta against Hollywood, it’s not hard to predict how this movie is going to end.
Roblox has unveiled an early version of its Mesh Generator API, a 3D object generator powered by CUBE 3D, a 1.8 billion-parameter model. This tool lets users create 3D objects from text prompts, with future plans to support generation from images. Roblox wants to simplify content creation, expanding beyond traditional game design to capture a larger share of the $180 billion gaming market. The company also plans AI models for speech-to-text, text-to-speech, and real-time translation. While free, the tool has usage caps. Roblox’s long-term vision includes generating entire interactive scenes on demand.
Directors Joe and Anthony Russo defend use of AI in The Electric State for voice modulation. Joe Russo remarked that AI’s role in Hollywood is often misunderstood, stating, “There’s a lot of finger-pointing and hyperbole because people are afraid. They don’t understand.” He further noted that while AI isn’t yet suitable for “mission-critical work” due to its potential for inaccuracies, it’s well-suited for creative applications. The Russo brothers are also developing AI tools within their studio, Agbo, aiming to empower artists and streamline the creative process in filmmaking.
On the other side of the lot, Tony Gilroy, creator of the acclaimed series Andor, has chosen not to release the show’s 1,500-page script collection due to concerns about artificial intelligence (AI) misuse. He fears that making the scripts publicly available could enable AI systems to absorb and replicate his work without authorization. Gilroy expressed his reluctance, stating, “Why help the f**king robots anymore than you can?” This decision reflects a growing unease among creators regarding the potential exploitation of their intellectual property by AI technologies. The situation underscores the ongoing debate over AI’s impact on creative industries and the need for protective measures for original content.
Stability AI has introduced Stable Virtual Camera, an AI model that transforms 2D images into immersive 3D video scenes. The tool can synthesize novel viewpoints and simulate camera movements like panning and zooming without traditional 3D modeling. Supporting up to 32 input images, it generates sequences up to 1,000 frames. While promising for film, gaming, and VR, it struggles with human figures and complex textures. Released under a research license via Hugging Face, the model signals Stability’s pivot amid financial challenges. Competing with OpenAI’s Sora and Google’s Lumiere, it reflects the AI industry’s push into generative 3D content.
Elon Musk’s AI company, xAI, has acquired Hotshot, a San Francisco-based startup specializing in AI-powered video generation tools. Founded by Aakash Sastry and John Mullan, Hotshot developed models like Hotshot-XL to transform text prompts into dynamic videos. This acquisition aligns with xAI’s strategy to enhance its generative AI capabilities and compete with platforms like OpenAI’s Sora and Google’s Veo 2. Sastry expressed enthusiasm about scaling their efforts using xAI’s extensive computing resources. Before the acquisition, Hotshot attracted investments from notable figures, including Reddit co-founder Alexis Ohanian. Existing Hotshot users have until March 30 to download their content before services are discontinued.
XR At SXSW 2025: Expanding The Boundaries Of Immersion. SXSW 2025’s XR showcase pushed the limits of immersive storytelling, featuring award-winning VR, AR, and MR experiences, from haptic empathy-driven VR to large-scale dome projections. The XR Experience Competition featured 15 world premieres, with the top Jury Award won by Chloé Lee’s Reflections of a Little Red Dot, an open-world documentary exploring Singapore, a country in transition. Judges praised its subtle yet deeply resonant storytelling, calling it “a universal sense of place.” Also honored with a Special Jury Award Special was Proof As If Proof Were Needed created by Ting Tong Chang, Matt Adams.
Virtuix has unveiled the Omni Mission Trainer (OMT), a mixed reality system featuring omni-directional treadmills that enable soldiers to physically navigate immersive 360-degree virtual environments by walking, running, jumping, and kneeling. Supporting up to 15 participants, OMT facilitates team-based training scenarios such as mission rehearsals and active shooter responses. The system integrates soldiers’ authentic equipment into the virtual space, enhancing operational realism. An After-Action Review tool enables real-time performance analysis.
Singapore-based Vidu, the generative video platform from ShengShu Technology, is teaming up with Los Angeles animation studio Aura Productions to co-produce a sci-fi anime series made entirely with AI tools. The series of 50 short episodes, will debut across social platforms in 2025 and showcase Vidu’s new “Multiple-Entity Consistency” feature, designed to maintain visual coherence across characters and environments. Aura Productions, led by Luo Yan and showrunner D.T. Carpenter, who specializes in teen-targeted anime content.
The inaugural Austin AI Film Festival (AAIFF), adjacent but not part of SXSW, concluded last week in Austin, Texas. Organized to recognize creators using AI tools, the festival showcased narrative films across genres. The top honor, a $5,000 cash prize for Best AI Narrative, was awarded to One Last Wish, directed by Edmond Yang, recognized for its compelling integration of AI in narrative cinema.
FBRC.ai has published its first quarterly AI Industry Report, offering a snapshot of the rapidly evolving AI studio landscape. Focused on 98 AI-native studios, the report includes interviews with nine leading players: Promise, Asteria, Secret Level, shy kids, Fable, Argil, Move.ai, Scenario, and Frore. The report highlights how these studios are reshaping production pipelines, redefining creative roles, and building new infrastructure for AI-driven storytelling. Future reports will cover creators, startups, and emerging workflows. FBRC.ai was co-founded by Rachel Joy Victor and Todd Terrazas to accelerate AI integration into storytelling and content creation. They help early-stage AI startups find product-market fit while guiding corporations through AI adoption as strategic advisors.
Nem Perez is following up its hilarious, delightful, and unwatchable T2 fan film with an adaptation of ‘Alice in Wonderland.’ This is a natural for blending AI-generated imagery, 3D animation, and live action through an “Exquisite Corpse” technique, allowing over 25 of the best AI studios and artists to contribute their unique visions while maintaining narrative cohesion. Reza Sixo Safai and Jagger Waters lead the story team. Perez’s creative team includes prominent AI filmmakers Fred Grinstein and Minh Do of Machine Cinema, Reza Sixo Safai of Massive Studios and Max Einhorn of Gennie Studios. The roster of A.I. Filmmakers features Junie Lau, who won silver at last year’s Runway Film Festival, MetaPuppet, the 1st prize winner of the Culver Cup, and Maddie Hong, a finalist in Culver Cup & Runway’s 48hr competition.
The submission deadline for the Runway’s AI film festival has been extended to April 6, 2025. This year’s jury includes Joel Kuwahara (Co-founder and President of Production, Bento Box Entertainment), Jane Rosenthal (Founder and CEO of Tribeca Enterprises), Bruce Markoe (Head of IMAX Post and SVP, IMAX Corporation) and Kia Brooks (Deputy Director, The Gotham Film and Media Institute), among others.
This column is the script for the news portion of the author’s weekly podcast co-hosted by former Paramount futurist and co-founder of Red Camera, and Rony Abovitz, founder of Magic Leap, Mako Robotics, and Synthbee AI. This week our guest is Bob Cooney, the most prominent thought leader in immersive technologies and location-based entertainment. We can be found on Spotify, iTunes, and YouTube.
What We’re Reading
Something is Rotten Cupertino – Apple AI (DaringFireball blog)
Demand for VR headsets remains low (Computer World)
Meta: “We’re Still Investing Massively In VR Gaming And Don’t Plan To Stop” (Upload VR)
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