Digital Domain Holdings, the renowned Hong Kong-listed company behind the Oscar-winning visual effects in Marvel Studios' blockbuster films, is setting up a research and development (R&D) centre at Hong Kong Science Park in Sha Tin. This new facility will focus on cutting-edge visual effects and artificial intelligence (AI) video production.
By the end of 2029, Digital Domain plans to invest HK$204 million (US$26 million) in this R&D centre. This investment aims to expand the company's professional team and further its technological capabilities. At the launch ceremony held on Wednesday at the Hong Kong Science and Technology Parks Corp., Daniel Seah, acting chairman and chief executive of Digital Domain, shared the company's ambitious plans.
“Our new R&D centre will focus on developing virtual humans powered by AI and their application in service-oriented environments,” said Seah. The centre will also explore advancements in AI video production technology.
Leveraging vast digital assets for innovation
Digital Domain boasts an extensive collection of digital assets. Seah says these assets are crucial for machine learning, training, and other AI technologies. The company plans to leverage its vast databases, including the best motion-capture library, digital-asset library, and human face data library, established in 2008.
“These digital assets are the petroleum of the new era,” Seah explained. “We have 30 years' worth of data in storage, which will be used for machine learning and digital training at the Hong Kong Science Park.”
Moreover, Digital Domain aims to file five Hong Kong patents to boost technological innovation, further solidifying its position as a leader in the field.
A legacy of groundbreaking visual effects
Founded in 1993 by film director James Cameron, visual effects pioneer Scott Ross, and make-up effects creator Stan Winston, Digital Domain has a storied history. The Los Angeles-based company earned its first Academy Award for the visual effects in the 1997 film Titanic. Since then, it has produced a visual impact for over 500 films, including the Marvel Cinematic Universe's Avengers series, the Dune franchise, and the Indian Telugu-language period action drama RRR. Among the top 20 highest-grossing films globally, Digital Domain has designed visual effects for six and won three Oscars for Best Visual Effects.
However, the digital domain has faced its share of challenges. After declaring bankruptcy in 2012, it was acquired by Sun Innovation Holdings, a Hong Kong-based firm involved in scrap metal trading, commercial properties, and car parks. The company continues to encounter financial difficulties despite raising further investments and diversifying into virtual reality (VR) content services. In 2023, its revenue fell by about 23 per cent, and gross profit declined by 45 per cent from 2022, leading to losses of HK$476 million, marking the ninth consecutive year of financial deficits.
Expanding horizons
Despite these challenges, Digital Domain is determined to use its technology and expertise to advance Hong Kong's film industry and beyond. The company envisions applying its VR technology to various sectors, including banking, education, elderly services, and tourism.
“We've been destroying worlds in films,” Seah remarked. “Now we need to create a new world.”
Digital Domain's new R&D centre represents a significant step towards achieving this vision, promising to bring innovative visual effects and AI technology to Hong Kong and the world.
