Major Hollywood studios have shifted from banning generative AI to requiring visual effects vendors to have a concrete plan for using the technology. Daniel Seah, chief executive of Weta FX, told reporters in Taipei on Friday that the industry standard has changed dramatically over the last year.
Seah spoke at the Taiwan Creative Content Fest after Weta FX signed a partnership with the Taiwan Creative Content Agency (TAICCA). The deal includes a collaboration with local animation and VFX firm Moonshine Studio. According to Seah, the shift in studio policy has forced VFX houses to adapt quickly or lose business.
Studios Demand AI Strategy
Seah described the timeline of this industry-wide pivot. Early last year, legal departments at major studios sent clear directives prohibiting the use of generative AI in their projects. By mid-year, several clients relaxed these rules, allowing AI use only with pre-approval and limiting it to a small number of approved vendors.
The current stance is far more demanding. Since the third quarter of this year, clients have begun asking Weta specifically about its AI approach. The focus is largely on cost savings.

“If you don’t have an AI strategy, don’t bother to work with us,” Seah said. This pressure drove Weta to seek a partner that could accelerate its AI development. It found one in Moonshine Studio, a Taiwanese outfit that has been moving quickly on AI tools without the client restrictions Weta faces.
Partnership and Technical Approach
Weta FX has no intention of using AI to replace its artists. Seah stated the technology is meant to enhance workflows and increase efficiency. The company’s chief technology officer, Kimball Thurston, noted that Weta is building its own AI models for modifying and recreating digital worlds. These are not general chat models but specialized tools for long-form content.
Thurston described the goal as a tool that lets artists refine stories across entire timelines, rather than just short clips. The collaboration with Moonshine will likely focus on the artist layer of AI development. Weta also uses outside video models like Kling AI and ByteDance’s Seedance where clients permit it. Security rules require these models to be hosted outside China, which is feasible because ByteDance operates globally.

Under the new agreement, TAICCA and Taiwan’s Ministry of Culture will identify young talent for Weta FX. The VFX house may offer internships at its offices in Wellington, Melbourne, and Vancouver. Seah noted that Weta recently announced plans to open a representative office in London as well.
Expansion in Asia
Weta FX currently has no physical footprint in Taiwan. Seah called the island an ideal base for exploring the Asian market due to its proximity to Southeast Asia, Japan, and Korea, as well as government backing and a strong pool of engineers. Thurston added that Weta has also spoken with potential partners in Thailand and Korea.
Thurston said the move is about market enablement rather than just location. TAICCA chair Sue Wang called the deal the biggest Taiwan has struck in the content industry so far. She highlighted the opportunity to move from hardware to software applications.
Weta has also been working on an open-source project called the Rongotai Model Train Club. This initiative tracks refinement and LoRA training, writing usage data into image metadata. Anyone defining a model must state which datasets were used. This effort aligns with work at the Visual Effects Society’s Technology Committee and MovieLabs.

Thurston also mentioned a recent data center design award for a cooling system that uses no water. He criticized the use of gas turbines for data centers as bad engineering. Weta VFX supervisor Sheldon Stopsack emphasized that new tools must fit into existing pipelines, including motion capture. The goal is to maintain creative control for filmmakers while using technology to shape the world.
Thurston added that audiences still want to see actors perform, even if they are playing creatures like apes or Na’vi. The technology supports the performance, but the human element remains central.
Source: Variety

