Tyler Perry halts $800M studio expansion due to AI advancements

The 'Mea Culpa' director says the new tool from OpenAI has halted his expansion

For the past four years, filmmaker Tyler Perry has planned to expand his studios in Atanta, a massive venture that would cost him around $800 million. 

Last week, OpenAI debuted its new tool, Sora, which can create visually complex shots of subjects and their backgrounds. The innovation has foiled Perry's project.

The "Mea Culpa" director had intended to add another 12 soundstages to his backlot.

"All of that is currently and indefinitely on hold because of Sora and what I’m seeing," he told The Hollywood Reporter Thursday. "I had gotten word over the last year or so that this was coming, but I had no idea until I saw recently the demonstrations of what it’s able to do. It’s shocking to me."

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Tyler Perry in a velvet purple tuxedo soft smiles ont he carpet

Tyler Perry had plans to expand his studio in Atlanta with 12 new soundstages. (Axelle/Bauer-Griffin/FilmMagic/Getty Images / Getty Images)

Perry recognizes the benefit of the technology lowering location and set costs. He's also cognizant it might cost some people their jobs. 

WHAT IS ARTIFICIAL INTELLIGENCE (AI)?

"I immediately started thinking of everyone in the industry who would be affected by this, including actors and grip and electric and transportation and sound and editors. And looking at this, I’m thinking this will touch every corner of our industry," he explained.

A picture of the exterior of Tyler Perry Studios in Atlanta with a hoirzontal sign overhanging a white building and tan walkway

Although established in 2006, the Atlanta location for Tyler Perry Studios was unveiled in 2019. (Raymond Boyd/Getty Images / Getty Images)

"I think it’s going to be a major game changer because if you could spend a fraction of the cost to do a pilot that would’ve cost $15 [million], $20 million or even $35 million, if you’re looking at HBO, of course the bottom line of those companies would be to go the route of lesser costs. So, I am very, very concerned that, in the near future, a lot of jobs are going to be lost. I really, really feel that very strongly."

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Perry opened Tyler Perry Studios in Atlanta in 2019, although the company was established in 2006.

He admits to using AI in two upcoming films, but Perry doesn't feel pressured to use it in all his productions. 

"I’ve got two sides here to this thing. For me, I’m looking at my business and the bottom line, but I’m also very concerned about all the people that I have trained and [brought] up in this industry. I’m concerned about what will happen to them," he noted.

Tyler Perry in a bright purple jacket and lilac purple shirt on the carpet with black tinted glasses

Tyler Perry says he has used AI in two of his upcoming films. (Kayla Oaddams/WireImage/Getty Images / Getty Images)

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Perry believes everyone should stay vigilant with respect to legislation.

"It’s not just our industry, but it’s every industry that AI will be affecting, from accountants to architects. If you look at it across the world, how it’s changing so quickly, I’m hoping that there’s a whole government approach to help everyone be able to sustain."

A representative for Perry did not immediately return FOX Business' request for comment.