Since AI tools went mainstream, filmmakers, writers, and actors have been scrambling to figure out whether these technologies can truly assist their creativity or if they might end up replacing humans. But there’s a larger concern to address before we get swept away by debate: AI can’t run without enormous data centers and energy infrastructure.

A new joint venture, dubbed Utopai East, aims to address that need by developing infrastructure specifically for producing movies and TV shows using AI. The joint venture is held 50-50 by investment firm Stock Farm Road (SFR) and AI film and television production company Utopai Studios.

SFR, co-founded by Brian Koo (the grandson of LG Group’s founder Koo In-hwoi) and Amin Badr-El-Din, the founder and chief executive of BADR Investments, is contributing capital to the joint venture, along with creative expertise and industry contacts. Utopai, meanwhile, is providing the technology, workflow and infrastructure.

The project will also involve co-producing film and television projects, and expanding access to Korean intellectual property for international audiences. Production will begin using existing infrastructure, and the company expects the first piece of content from this collaboration to be released next year, according to Ceilica Shen, co-founder and CEO of Utopai Studios.

In the short term, using AI is going to be primarily about lowering costs and increasing efficiency, Koo told TechCrunch.

“But beyond that, we’re very excited about the new possibilities AI opens up. As we engage with creators, we’re exploring what entirely new things can become possible. Right now, some of our early focus is on creators in Korea,” Koo said. “Just as short-form content was a novelty when it first emerged, we see opportunities for fresh approaches. We’re working not only with established directors in cinema but also with young, innovative creators who aren’t limited to traditional movies.”  

But novelty alone won’t allay the concerns of the people working in the entertainment industry, or the ones consuming the content. AI could one day replace people in creative roles like acting, performance, and writing, yet it often lacks the depth, nuance and emotional resonance of human storytelling. This has sparked a broader debate about the value of human creativity in an era when machines can mimic, but not fully replicate, the human touch.

But Shen and Koo maintain that their use of AI is only aimed at improving existing processes. “These questions have been at the center of everything we build at Utopai Studios,” Shen said. “From the beginning, our focus was never on automation. Our workflow is designed to work alongside filmmakers, not in place of them. We still need writers to write, directors to direct, and actors to perform,” Shen said.

Every model and every dataset used is fully licensed and contractually approved, ensuring the technology respects the creators whose work makes filmmaking possible, Shen added.

“We want creators to understand that AI can expand their creative potential rather than compete with them. It can help bring their dreams to life, giving them the freedom to fully explore their creativity without worrying that AI will replace them. This, we believe, is going to be one of the most exciting outcomes for us,” Koo said.

“Typically, content and IP grow incrementally — one IP develops after another — but with the right technology, especially AI, there’s potential for exponential growth. This isn’t about AI replacing people; it’s about the massive value it can create for audiences, creators, and engineers alike,” he added.

The deal follows SFR’s recent agreement with the Jeollanam-do Province government to build a 3-gigawatt AI data center in South Korea.

“The data center is part of our larger mission at Stock Farm Road to build the backbone for the next generation of intelligence-driven industries. Beyond Utopai Studios and entertainment, we are also focused on areas such as manufacturing, energy-to-information, AI, and quantum computing. These are all interconnected fields that require the same kind of infrastructure,” said Koo.

The data center will serve as the foundation for everything Utopai East is developing, and will include complete AI infrastructure for entertainment content, spanning data management, creative intelligence, production and distribution.

While the joint venture’s financial details were not disclosed, the capital is coming from multiple channels, including SFR’s investment vehicles, global sovereign and institutional investors, and industry partners in film and entertainment, the company said.

The JV will start off making Korean content, but aims to expand to other parts of Asia eventually. “Japan is always also a great market,” making it a natural starting point for expansion, Shen noted, adding that she also sees significant potential in China and Thailand.