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Edward Saatchi, CEO of @showrunnertv joins the AI XR Podcast to deliver a sobering assessment of the AI video landscape: after four years, there's still no commercial marketplace, no monetization path, and very little artistic value being created. Creators are stuck making 10-second solo projects instead of banding together to make features and TV shows that can compete with Rick and Morty or Netflix originals. The solution, Edward argues, is to build platforms where creators get paid every time someone remixes their work—turning audience engagement into revenue through interactive, remixable content. Edward's most audacious project proves the concept: reconstructing Orson Welles' lost masterpiece, The Magnificent Ambersons, using motion-capture actors and AI to restore 44 minutes of footage destroyed by studio cuts in 1942. The irony is intentional—it's a film about technology destroying beauty, now being restored by technology. But Edward's approach isn't the text-to-video slop flooding social media. It's human performance driving AI synthesis: stage actors captured in mocap, the original cutting continuity used as a blueprint, and AI filling the gaps with cinema-quality results. The cost: $10 million instead of $100 million traditionally. The AI XR news conversation ranges across Amazon's 16,000 layoffs and robotics expansion, the death of Amazon Go convenience stores, Snap spinning off Spectacles, Apple and OpenAI developing AI wearables, Google's Genie model creating interactive 3D game worlds, and the VR industry's continued contraction (Walkabout Mini Golf layoffs, Atlas V pivoting to location-based). Charlie, Ted, and Edward debate whether AI is disrupting Hollywood or just making derivative work cheaper, whether there's a path to theatrical distribution, and why disruptive technology often looks like a joke at first. Timestamps: [00:02:01] News segment: Amazon layoffs, Amazon Go/Fresh closures, Snap spinning off Spectacles [00:19:11] Edward Saatchi joins: the state of AI video and the marketplace problem [00:22:00] "Derivative but worse": Edward's critique of current AI content [00:24:00] Edward's challenge: "derivative but better" or "original and good" [00:28:00] The marketplace problem: 4 years in, still no buyers, no revenue, no sustainability [00:31:00] Edward's challenge to creators: band together, make features and TV shows [00:34:00] Ted's thesis: AI is quietly disrupting VFX and screenwriting behind the scenes [00:39:00] AI as cost reduction for indie filmmakers: fractional VFX budgets [00:44:00] Critters: proof-of-concept for AI-assisted theatrical animation ($10M vs. $100M) [00:49:00] Showrunner's business model: creators earn every time someone remixes [00:52:00] The Magnificent Ambersons project: restoring Orson Welles with AI [00:58:00] Using the original cutting continuity and motion-capture actors Edward makes the case that AI's killer app isn't speed or cost reduction—it's remix, interactivity, and personalization at scale. The challenge is building the infrastructure and incentives so creators can actually make money. Until then, AI video remains stuck in the trough of disillusionment. This episode is brought to you by @ZapparApp , creators of Mattercraft—the leading visual development environment for building immersive 3D web experiences for mobile headsets and desktop. Mattercraft's built-in AI assistant helps you design, code, and debug in real time, right in your browser. Start building smarter at mattercraft.io.