Generative AI is poised to transform Hollywood's business dynamics, as tech giants like OpenAI and Anthropic challenge established players. With valuations soaring, these AI firms are driving interest from major tech companies seeking to acquire entertainment assets for content training. As streaming alters traditional business models, companies like Warner Bros. Discovery and NBCUniversal are downsizing, making them attractive acquisition targets. The legal landscape is also shifting, with studios facing copyright issues related to AI-generated content. Recent court rulings have clarified the legality of training AI on copyrighted materials, prompting Hollywood to adapt its approach to copyright protection. Producers are urged to document AI interactions and understand usage terms to safeguard their work. The intersection of AI and entertainment is creating new financial opportunities, as tech firms seek to license extensive content libraries, indicating a significant shift in how both industries will operate moving forward.