ByteDance has reportedly paused plans to release its Seedance 2.0 AI video generator globally, following legal concerns raised by Hollywood studios, according to a report from The Information.

The model debuted in China in February, where short clips generated by the system quickly spread across social media. One widely shared video depicted Tom Cruise fighting Brad Pitt, drawing attention for its realism but also triggering criticism from the film industry.

Some screenwriters and filmmakers warned that tools like Seedance could threaten creative professions, while major studios moved quickly to challenge the technology’s potential use of copyrighted characters and likenesses.

Hollywood Pushback Over Intellectual Property

According to the report, several studios sent cease-and-desist letters to ByteDance after the viral clips appeared online. Lawyers representing Disney reportedly accused the company of carrying out a “virtual smash-and-grab” of the studio’s intellectual property.

In response to the criticism, ByteDance said it would implement stronger safeguards to protect intellectual property within the system.

The company had originally planned to launch Seedance 2.0 internationally in mid-March, but the rollout has now been delayed while engineers and legal teams work to address potential compliance and copyright issues.

ByteDance has not publicly confirmed the delay and did not immediately respond to requests for comment.

The situation highlights the growing tension between generative AI companies and the entertainment industry, as tools capable of producing realistic video content raise new questions about copyright, likeness rights, and creative ownership.

OpenAI is in advanced discussions with several major private equity firms to establish a joint venture designed to accelerate enterprise adoption of its artificial intelligence tools, according to reports from Reuters.

According to people familiar with the negotiations, the proposed venture would involve firms including TPG, Advent International, Bain Capital, and Brookfield Asset Management. The initiative could carry a pre-money valuation of about $10 billion.

Under the proposed structure, the participating private equity firms would collectively commit roughly $4 billion in capital in exchange for equity stakes and board representation in the venture. TPG is expected to act as the anchor investor, contributing the largest share of capital, while the other firms would participate as co-founding partners.

The venture would distribute OpenAI’s enterprise products across companies owned by the private equity firms and potentially beyond their existing portfolios. The arrangement would also give the investors early access to OpenAI’s technology as they seek to prepare their portfolio companies for increasing AI disruption.

Competition With Anthropic for Enterprise Influence

OpenAI and its rival Anthropic are both actively pursuing relationships with private equity groups, which control large networks of companies and influence corporate technology spending.

Anthropic is reportedly exploring a similar joint venture structure with firms including Blackstone, Permira, and Hellman & Friedman to deploy its Claude AI platform across portfolio companies. That proposed partnership could involve approximately $1 billion in equity investment.

The structure of the deals differs, however. OpenAI is reportedly offering preferred equity, which gives investors priority returns and downside protection, while Anthropic is offering common equity.

Driving Enterprise AI Adoption

The potential joint venture could also support the rollout of OpenAI’s enterprise platform Frontier, which anchors the company’s broader Frontier Alliances program. Through this initiative, OpenAI pairs engineers with consulting firms such as BCG, McKinsey, Accenture, and Capgemini to help organizations integrate AI agents into core operations.

“As demand for AI continues to skyrocket, we want to help our customers deploy these technologies in all the ways that help them create impact,” said Fidji Simo, CEO of Applications at OpenAI.

OpenAI’s enterprise business has grown rapidly. Sources say it generated approximately $10 billion of the company’s $25 billion in annualized revenue as of last month.

The talks remain ongoing, and no final agreement has been reached. If completed, the partnership could create one of the largest AI-focused distribution networks for enterprise software through the private equity ecosystem.