Google is investing about $75 million in movie studio A24 as part of a new artificial intelligence (AI) partnership, according to an announcement made by Google and A24 on Monday. The investment is linked directly to the AI partnership and is not a fundraising round or capital raise for A24.Google stock falls despite $75 million A24 AI deal amid AI competition concerns. (Pexel/Representative image) (Pexel)Under the deal, Google’s AI division DeepMind and A24 will work together to develop new AI-powered tools, workflows, and techniques for making and distributing movies, as per the report by TheWrap. This is the first time Google has taken an ownership stake in a movie studio, making the deal significant for both the technology and entertainment industries. Google already has a major presence in media through its ownership of YouTube, but it had never previously invested directly in a film studio.Google AI movie dealGoogle DeepMind co-founder and CEO Demis Hassabis said in the company statement that the company wants to build AI tools by working closely with filmmakers and artists from the beginning. Hassabis said the goal is to create AI features that help artists tell stories in authentic and meaningful ways while supporting their creative vision. DeepMind Vice President Eli Collins said major breakthroughs happen when advanced technology is placed in the hands of talented creators.The partnership will allow A24 to use DeepMind’s AI technology and research capabilities in its filmmaking process. However, the agreement is non-exclusive, meaning A24 can still work with other technology companies and AI providers if it chooses. The deal also does not give Google access to A24’s movie library, despite the collaboration between the two companies.Also read: Stock market today: US futures rise as Iran peace talks progress ahead of inflation reportWhy Google stock fallingWhile the A24 investment grabbed headlines, it was not the main reason Alphabet shares fell sharply on Monday. Alphabet stock dropped about 6.7% in morning trading, reflecting broader investor concerns about the company. Investors were worried about a combination of AI-related talent departures, legal challenges, and questions about how Google is spending its money.One major concern was the departure of Noam Shazeer, a top Google AI executive and co-leader of the Gemini AI models. Shazeer announced that he is leaving Google to join OpenAI, according to reports over the weekend cited by Investing.com. His exit surprised investors because Google had reportedly spent around $2.7 billion less than two years ago to bring him back from Character.AI.Soon after, another respected AI leader, John Jumper, confirmed he was leaving Google after nearly nine years at the company. Jumper is joining AI rival Anthropic. The back-to-back departures of two high-profile AI leaders raised concerns that Google could be losing important talent to competitors.Google’s Gemini AI competitionInvestors fear that Google’s Gemini AI models may be falling behind competing AI systems developed by OpenAI and Anthropic. Some analysts warned that the performance gap between Google’s AI models and leading competitors could be growing instead of shrinking, as per the Investing.com. These concerns increased pressure on Alphabet shares and contributed to the stock sell-off when markets reopened.The new A24 partnership shows Google is continuing to invest heavily in AI and looking for new ways to apply the technology in creative industries such as filmmaking. Even so, investors appeared more focused on the loss of top AI talent and competitive pressures in the AI race than on the A24 investment itself. As a result, Alphabet shares moved lower despite the announcement of a major new AI partnership with A24.