‘Moving Forward’: Tyler Perry Makes Major Studio Announcement After Halting $800 Million Expansion

Tyler Perry is embracing the next phase of filmmaking. But he is drawing a line around how artificial intelligence should be used in Hollywood.

Months after indefinitely pausing an $800 million expansion following concerns over the rapid advancement of AI technology, the filmmaker has announced a new partnership.

This new collaboration that will bring a state-of-the-art virtual production soundstage to his southwest Atlanta campus.

Award-winning filmmaker Tyler Perry makes bold move after pausing his $800 million studio expansion in Atlanta. (Photo by Alan Chapman/Dave Benett/Getty Images for Netflix)

According to CBS News, Perry teamed with Synapse Virtual Production on a multi-year agreement to build and operate a virtual production facility.

This will blend digital filmmaking tools with traditional production methods while preserving jobs for crews working behind the scenes.

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The project marks a notable shift for Perry, who publicly sounded the alarm last year after seeing demonstrations of OpenAI’s text-to-video model, Sora.

At the time, he said the technology had advanced so quickly that he halted plans to expand Tyler Perry Studios with 12 additional soundstages. He warned that AI could dramatically reshape the entertainment industry and eliminate jobs.

The media executive’s latest investment also builds on years of expansion at Tyler Perry Studios. The filmmaker purchased an additional 37 acres adjacent to the former Fort McPherson property for roughly $8 million in 2023. This purchase was part of his long-term vision to grow the studio campus.

More recently, Perry continued pursuing development around the property through a planned entertainment district that would include retail space, restaurants, offices, a theater and public gathering areas.

Together, the projects illustrate that while Perry put his $800 million expansion on hold. He has continued investing in the future of his Atlanta campus through other large-scale developments.

Now, Perry says the goal is to incorporate new technology without replacing the people who make productions possible.

“I’m paying close attention to what these tools can do, and I’m also thinking about the people who make this industry work,” Perry said in a statement announcing the collaboration.

“This collaboration is about moving forward in a way that keeps crews working and traditional production jobs intact while also allowing creatives new ways to build worlds and tell stories for the big and small screens.”

Tyler Perry Studios will build the new facility on its 365-acre campus in Atlanta. It will convert one of the studio’s existing soundstages into a virtual production space.

The stage will feature LED volume walls, advanced camera tracking and real-time digital environments powered by Unreal Engine.

The technology will allow filmmakers to create large-scale settings without relying solely on physical locations. It also reduces the need for elaborate set construction, according to Deadline.

The soundstage will support a wide range of productions.These include feature films, television series, music videos, commercials, livestreams and other digital media projects.

Tyler Perry Studios also plans to make the facility available for outside productions. The move continues its practice of renting studio space to other filmmakers.

Synapse Virtual Production currently operates a virtual production stage in Los Angeles, overseeing development and operation of the facility.

The company is also preparing to open another stage in New York. It says its workflow includes AI-assisted tools for tasks such as environment capture, look development and asset creation. Human oversight will remain in place throughout the production process.

The announcement comes after Perry’s highly publicized decision to freeze his original studio expansion plans in early 2024.

Following OpenAI’s unveiling of Sora, Perry said he was stunned by what the technology could accomplish. He questioned whether it still made sense to invest hundreds of millions of dollars in new construction.

“All of that is currently and indefinitely on hold because of Sora and what I’m seeing,” Perry told The Hollywood Reporter at the time. “I had gotten word over the last year or so that this was coming, but I had no idea until I saw recently the demonstrations of what it’s able to do. It’s shocking to me.”

He explained that AI-generated video had reached a point where filmmakers could create realistic environments from a computer. They no longer had to travel to locations or construct expensive sets.

“I can sit in an office and do this with a computer, which is shocking to me,” Perry said.

While acknowledging the creative possibilities, Perry also voiced concern about the industry’s workforce.

He warned that AI advances could affect not only actors but also editors, transportation crews, sound professionals and countless others. Their livelihoods depend on film and television production.

“I am very, very concerned that in the near future, a lot of jobs are going to be lost,” Perry said. “I really, really feel that very strongly.”

Those concerns remain central to his latest venture.

Rather than abandoning emerging technology, Perry appears to be taking a measured approach. He is investing in tools that expand production capabilities while emphasizing that human crews will remain at the center of the filmmaking process.

Synapse CEO Justin Diener called the partnership “a defining moment” for both companies. He said the project will give creators access to real-time production technology while opening new creative possibilities.

Producer Beau Flynn, who serves on Synapse’s advisory board, echoed that sentiment. He said Perry has consistently prioritized the people behind productions. He added that the collaboration strengthens Atlanta’s position as a major filmmaking hub while keeping the process “human and crew-led.”

Tyler Perry Studios expects the new virtual production soundstage to be completed and operational by the end of 2026.

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