Sept 24 (Reuters) - Stability AI said on Tuesday James

Cameron, the director of "Titanic" and "The Terminator" movies,

had joined the artificial intelligence startup's board.

GenAI's meteoric rise has drawn Hollywood's attention at a

time when production costs have surged.

After OpenAI's text-to-video tool Sora created waves in

February with its high-quality videos, Hollywood executives and

agents met with the company to discuss potential uses for the

technology, industry insiders had said.

Cameron's appointment takes Stability AI closer to its

goal to "transform visual media" by providing creators with a

full portfolio of AI tools,

CEO Prem Akkaraju

said.

London-based Stability AI, which raised about $80 million in

funding earlier this year, makes an artificial intelligence

image-generation tool that rivals those made by Alphabet's

Google and Microsoft ( MSFT )-backed OpenAI.

It also provides Stable Video Diffusion, a text-to-video

generation tool.

Cameron said the intersection of GenAI and

computer-generated imagery will "unlock new ways for artists to

tell stories in ways we could have never imagined".

Hollywood's relationship with AI has not been smooth

sailing, however.

A major reason that writers and actors went on strike in

2023 was to seek protections for their images and their craft

from the unregulated use of AI, with limits on how studios can

use the technology when making movies and TV shows.

Cameron will join other newly appointed Stability AI board

members, including former Facebook President Sean Parker, who

serves as executive chairman of the company.

Stability AI had raised $101 million in a seed round led by

Coatue Management and Lightspeed Venture Partners at a $1

billion valuation in 2022, but has since been struggling to

raise more funds due to the lack of a business model.