Carmelo Anthony is entering the artificial intelligence entertainment business through a partnership with Silicon Valley startup Utopai Studios, backing a company that Forbes values at about $1 billion. The Hall of Fame basketball player will use his Creative 7 Productions label to help produce AI-generated video projects focused on his life and other sports stories, marking a new path for athletes who want to turn their personal narratives into screen content.
Utopai, formerly known as Cybever, began as an AI toolmaker focused on generating 3D environments for videogames before shifting toward film and television. Founded in 2022 by Cecilia Shen and Jie Yang, the company has tried to position itself as both a technology provider and a studio. Shen argues that selling software alone is not enough for long-term success in Hollywood, and that owning original projects is key to becoming a major player in the industry.
The company is operating in a rapidly expanding and highly competitive AI media market. More than 65 AI studios have reportedly launched since 2022, while major entertainment companies and investors have been betting on AI filmmaking firms through deals with OpenAI, Runway AI, Holywater, Promise AI, B5 Studios and others. At the same time, Hollywood unions and guilds have raised concerns that AI could replace creative jobs.
Utopai says its new proprietary platform, PAI, is central to its strategy. Released in March, PAI allows filmmakers to create character models once and reuse them across scenes, while also adjusting camera angles, performances and environments without re-rendering entire sequences. According to the company, the system has already helped generate $11 million in annual recurring revenue in its first 60 days, with clients in multiple countries.
Revenue has grown quickly, rising from $750,000 in 2024 to an estimated $7.5 million in the first half of 2025. Even so, Utopai remains a speculative bet, since no AI studio has yet delivered a commercially successful feature-length or episode-length project that has proven mainstream viability. Shen says the company wants to dominate long-form content, a market she describes as still wide open.
To strengthen its Hollywood credibility, Utopai has brought in experienced entertainment executives and producers. It is also developing original projects, including Space Nation and Cortés, which could benefit from the lower costs of AI-assisted production. Shen estimates a project like Cortés could be made with only 30 to 40 people, far fewer than the crew sizes typically required for a traditional big-budget production.
Utopai is also seeing traction outside the United States. It has sold international distribution rights and signed deals in markets such as Brazil, Germany and China. Shen says overseas audiences and producers are often more open to AI-generated content, especially in countries where local entertainment budgets are limited. The company hopes that success abroad will help prove the value of its technology and build a broader market for AI-made entertainment.
