• Higgsfield AI made a sci-fi action thriller called "Hell Grind" starring AI actors.
• The movie cost around $500,000 to produce.
• I went to a screening to see how it held up.

For a brief moment toward the midpoint of the AI-generated film "Hell Grind," I caught myself experiencing something unexpected: genuine emotion.

As the male lead, Roco, gazed at a photo of his recently kidnapped love interest, he flashed back to memories of them growing up together in an orphanage. The sadness and yearning felt real.

The sensation didn't last.

Mid-flashback, Roco and his AI-generated costars began laughing in an eerily synchronized fashion, their eyes peeled wide open. As I sat in New York's Metro Private Cinema this week, scooping up handfuls of popcorn, the uncanny valley of AI came roaring back.

Generative AI has crept into a variety of corners of the entertainment business this year, spooking many creatives who worry what it could mean for their jobs. While post-production teams are turning to the technology for de-aging and other effects, some actors in short dramas are already losing out on roles to AI characters. The shift is a top concern for the actors' union SAG-AFTRA, which approved new contract language this week that pushes producers to bargain over the use of synthetic performers.

"Hell Grind," which takes AI usage to the max, sprang up in May at the Marché du Film in Cannes (a side event that's not the famous Cannes Film Festival). The brainchild of startup Higgsfield AI — which runs an AI platform for creatives, brands, and marketers — it was conceived as a way to show the tech's potential as more than just a tool for making short videos. The company, which crossed a $1 billion valuation earlier this year, spent around $500,000 to produce its 95-minute film, with much of its budget going to computing costs. While AI regularly shows up in bits and pieces of Hollywood productions, "Hell Grind" is the highest-profile film made entirely with AI-generated visuals.

Higgsfield tapped a group of in-house creatives and outside filmmakers who used highly specific text prompts (typically around 3,000 words) to generate around 100 hours of content, which was edited down. The company did not use AI to write the script, except for a few short filler moments, which Higgsfield's CEO, Alex Mashrabov, told me he thought were noticeably less effective in the film.

The result is a visually impressive movie with a passable plot line, landing somewhere between a video game and an effects-heavy project like "Planet of the Apes."

"It's a new workflow, and it's also very important for us so that we show to the world what's possible," Mashrabov told viewers at the screening this week. "The production process looks different where it's actually possible to go back and iterate with AI and deliver exactly the emotion which the creative director was envisioning."

The company is releasing portions of the film on YouTube and plans to open source its workflow, production process, and prompts in the coming weeks.

At various points during "Hell Grind," I was taken out of the story when a character did something that just felt … off. The way Roco held a slice of pizza in one scene looked like it was his first time encountering the food, for example. The synthetic children in the movie generally creeped me out, and the AI-generated voice work didn't always feel consistent (one character seemed to flip between a British and American accent, for instance).

Still, it was hard to shake off the feeling that talented AI prompters may soon be coveted players in Hollywood.

While I wouldn't expect to see AI actors or writers playing a big role in the making of films like "Tár" or "One Battle After Another," it feels like this technology will be hard to resist for budget-sensitive executives angling to speed up movie production. That's especially true in genres like action and sci-fi, where visual effects budgets can be a big constraint. And the technology may open doors for independent filmmakers who have grand ideas but small budgets.

"Budgets and opportunities are not equally distributed across the world," Mashrabov said. "Hopefully, this will spark the next generation of creativity."

• Elon Musk has had a rocky relationship with advertisers since acquiring Twitter in 2022.
• Musk's X sued advertisers for allegedly violating antitrust law by boycotting the app.
• New SEC filings show that X's efforts to win back advertisers haven't led to a bonanza.

Elon Musk's attempts to win over advertisers have yet to spark a major recovery in ad revenue for X.

In 2025, ad revenue for X (formerly Twitter) reached $1.8 billion, up around 7% from 2024. That said, revenue was down 21% from 2023 and about 59% from 2021, the year before Musk took over Twitter and began alienating some brands with looser content moderation.

Here were the stats:

X's ad revenue figures were revealed in an S-1 filing by SpaceX, X's parent company.

Since buying Twitter, Musk's relationship with advertisers has been rocky.

In 2023, he told marketers who were skipping out on X ads that they could "go fuck yourself."

Musk hired an ad industry veteran, Linda Yaccarino, in 2023 to help woo marketers. Yaccarino previously ran ad sales at NBCUniversal.

The drama with the ad industry didn't stop, though.

A year later, X sued an advertising trade group, The World Federation of Advertisers, and some members, including CVS, Unilever, and Mars, alleging they violated antitrust law by collectively withholding ad spend. A judge later tossed out the suit, citing a lack of jurisdiction and X's failure to state a claim under the antitrust laws.

Yaccarino left the company in July 2025.

Last year, there was industry chatter that Musk's entry into politics may have helped X's ad prospects. As Musk took on a high-profile role in the US government, some advertisers began spending on X again. Ad industry insiders previously told Business Insider that they felt buying ads on the app had become a cost of doing business to appease Musk and his allies in President Donald Trump's White House. Musk left his role, and his relationship with the Trump administration has since become more muddled.

Advertising's centrality as a revenue source for X diminished in March 2025 after Musk decided to merge the app into his artificial intelligence company, xAI. The company's AI revenue is growing much faster than its advertising revenue, reaching around $1.35 billion in 2025, a 52% increase from the previous year.

With the decision to merge xAI into SpaceX earlier this year, advertising now accounts for just a fraction of the combined company's $18.7 billion in 2025 revenue.

That doesn't mean X has stopped trying to improve its ad products.

Last month, X announced it had revamped its ads business to integrate more AI tools. This month, X rolled out a new tool that uses AI to connect brands with creators that might be a good fit for their campaigns.

• TikTok advertising executive Khartoon Weiss is leaving the company.
• Weiss, who spent almost six years at TikTok, oversaw its North America ads business for the past year.
• Weiss is one of several advertising and marketing execs to leave TikTok this year.

TikTok's advertising team is undergoing another big shake-up.

Khartoon Weiss, the lead exec for TikTok's North American ads business, is exiting the company, four people familiar with the matter told Business Insider.

Weiss, who pitched TikTok's suite of ad products to marketers onstage at its NewFronts event last month, joined the company almost six years ago from Spotify. She oversaw TikTok's global agency and accounts teams before being promoted to lead the North America division of the global business solutions team in March 2025, following the departure of advertising head Blake Chandlee.

Digiday first reported on Weiss' exit.

Weiss' exit is the latest in a string of advertising and marketing team departures at TikTok.

Zuber Mohammed, TikTok's global head of consumer marketing, left the company in March. Sofia Hernandez, the global head of business marketing and commercial partnerships, and Rema Vasan, who headed up business marketing in North America, left the company last quarter.

Other teams at TikTok have also seen leadership changes this year, including the company's content division, which lost its global head of creators, Kim Farrell, in January.

Some of the executive exits have shifted control of North America teams to leaders from Singapore or China. When Chandlee left last year, oversight of the sales team, known as global business solutions, moved to Singapore-based executive Will Liu, for example.

TikTok's US team restructured in January while forming a new joint venture to transfer certain work, like US user data management, to a separate group that includes Oracle and investment firms MGX and Silver Lake. Its advertising and marketing teams remain under the control of parent company ByteDance.

As part of the structural change, Adam Presser, a trust and safety executive, became CEO of the US joint venture. Presser appeared alongside Weiss at TikTok's March NewFronts presentation to assure advertisers that the company's ads experience would not be disrupted amid internal changes.

• "Clipping" marketing, a practice where creators get paid to repost video clips, is taking off.
• Top-tier clipping creators can now earn thousands of dollars a month, with guaranteed pay.
• Clipping has gained popularity among podcasters, Kick streamers, and YouTubers like MrBeast.

There's a new class of creators moving from side hustlers to in-demand pros.

Dubbed "clippers," these creators are paid to post snippets of podcasts, livestreams, movies, or songs on TikTok and other social apps, creating the impression that they're trendy.

Even if you haven't heard of "clipping," you've likely seen this emerging social-media strategy in the wild.

YouTubers, podcasters, and Kick streamers are early adopters of the tactic, which is performance-based and usually only pays out if a video gets significant views.

The clipping community is filled with side hustlers who are happy to earn $200 from a viral video. However, as the category has matured and attracted larger budgets, a new professional class of high-performing clippers has emerged. These clipping all-stars can still get performance-based pay, but they're also being offered guaranteed retainers of $500 to $1,500 a month to ensure they get to work, according to one "elite clipper" application viewed by Business Insider.

"An elite clipper is someone who runs hundreds of pages, and across those hundreds of pages, multiple have millions of followers or a minimum 100,000 followers," said Evan Stanfield, cofounder of the clip-marketing agency Clipping Culture. "If we're paying a monthly retainer, we can ask them to post 20 or 30 times a month, instead of whenever they feel like it."

These "top 1% of clippers" can earn five figures a month, Stanfield said.

Clipping is gaining popularity at a moment of flux in the world of social media marketing. As algorithmic feeds become more personalized, hiring influencers to post sponsored content doesn't necessarily translate into views (unless you're a superstar). Marketers who post clipping campaigns only pay when their content performs.

YouTuber MrBeast recently launched his own clipping platform, Vyro, which he uses to promote his channel, according to the company's website.

"The clippers that we're talking about are not like influencers," said Johnny Cloherty, CEO of the marketing-agency Genni. "You're getting people that are like you and me, or maybe some college kids that are just looking for some extra dough."

Clippers can sign up for campaigns in Discord servers, side-hustle sites like Whop, or marketing platforms like Genni. While they're often paid to clip footage, at other times the task is to add a brand's logo to a viral video clip or to embed a song beneath a post.

They're typically offered between $1 and $4 per 1,000 views, marketers told Business Insider, though some agencies offer higher rates when creators reach thresholds like 100,000 or 1 million views.

To promote the launch of Beast Land, MrBeast offered creators $2 for every 1,000 views on clips they posted about the pop-up theme park, for example. A Vyro promotion for a November boxing match between Conor Benn and Chris Eubank Jr. offered the same rate. One of Clipping Culture's recent briefs asked clippers to promote footage from Sabrina Carpenter and María Becerra's Lollapalooza Argentina appearance for around $1 per 1,000 views.

"It is a little bit of a roll of the dice for the clippers, but it's a super low lift for them," Cloherty said. "These clippers have become an ecosystem and a community out there that kind of know what they're doing, and know the pros and cons of it."

• Netflix's co-CEO said he's asked President Donald Trump to avoid tariffs on foreign-made films and TV.
• Ted Sarandos said he thinks tax incentives are a better bet to boost US production.
• Global filmmaking has been a key differentiator for Netflix in the streaming wars.

Netflix co-CEO Ted Sarandos doesn't think tariffs are the right way to boost US movie and TV production — and he thinks he's gotten through to President Donald Trump on the issue.

"He has brought up tariffs for the movie and television industry many times, and I've hopefully talked to him the way out of them," Sarandos said in a new interview with POLITICO, which, alongside Business Insider, is part of the Axel Springer Global Reporters Network.

Trump has been keen on using tariffs to encourage more filming in the US. In May, he announced on Truth Social a plan to impose a 100% tariff on films produced outside the US. He hasn't implemented it so far.

Trump's plan to add tariffs on foreign movies stemmed from a desire to slow production declines in Hollywood and other areas of the US that "are being devastated" by filming incentive programs abroad, he wrote in his May announcement on Truth Social.

Los Angeles production work has been dropping off for years, and the city's media professionals are feeling the pain. Overseas filming hubs like London have been courting production work by offering big cost-saving incentives.

Sarandos said he'd prefer the US use similar tax incentives to bring filming back home.

"Healthy incentive programs attract a lot of production, and you've seen a lot of them move from California to Georgia to New Jersey," Sarandos told POLITICO. "Having the incentives versus tariffs is much better."

The tariff structure for a movie, which isn't a physical good, isn't entirely clear. A White House spokesman said in a statement shortly after Trump's announcement that "no final decisions on foreign film tariffs" had been made and that the administration was "exploring all options to deliver on President Trump's directive to safeguard our country's national and economic security while Making Hollywood Great Again."

A fee on foreign productions could become very expensive for Netflix, which has released a slate of international films and TV shows over the years, including "All Quiet on the Western Front," "Squid Game," and "Adolescence."

Netflix's global reach and its ability to turn a South Korean or German drama into a global hit have been key differentiators for the company, which is expected to spend as much as $20 billion on content this year.