Amazon MGM Studios is formalizing its AI production capabilities with a new dedicated unit backed by AWS infrastructure and partnerships with large language model providers, according to industry sources.
The studio, which produces Prime Video shows like Reacher and The Rings of Power, has been testing AI throughout its production pipeline since at least 2024. At AWS re:Invent last year, MGM demonstrated virtual production sets using Unreal Engine for real-time CG effects and generative AI tools across creative workflows.
The AI Studio initiative comes three months after Amazon cut 14,000 jobs company-wide in October 2025, including senior MGM executives like casting head Donna Rosenstein. Internal communications at the time cited AI integration as part of efforts to "get leaner." The company says efficiency gains from AI allow faster content development, though the timing with workforce reductions raises questions about net job impact.
Amazon acquired MGM in 2022 for $8.5 billion, bringing the 100-year-old studio's library and production capacity into its Prime Video ecosystem. Albert Cheng, a former MGM executive, moved into an AI-focused role developing filmmaker tools. In June 2025, Amazon's Alexa Fund invested in Fable Studio's AI Showrunner technology.
The studio joined the Motion Picture Association in October 2024, becoming only the second tech company (after Netflix) in the trade group. MPA leadership emphasized job creation in their announcement, a narrative complicated by the subsequent layoffs.
What this means in practice: The formalized AI Studio suggests Amazon is moving beyond experimental AI use to systematic deployment across production. The trade-offs, cost savings from AI tools versus workforce reduction, will play out over the next 12-18 months as projects using these workflows reach market.
Worth noting: No specific details on which LLM providers are involved or what production stages the AI Studio will target have been disclosed.