Mushroom mycelium has similar physical properties to animal leather and is a good alternative leather material that is emerging as a sustainable and eco-friendly material. In this study, we established a mass culture system of Phellinus linteus with high thermal stability and mechanical properties. After crushing P. linteus hyphae to a very small size, it was cultured at small-scale, large-scale, and BioReactor-scale to establish industrially available culture conditions. After identifying the optimal growth conditions, the automated mycelium culture container, which incorporates the technology of AI-based smart farms, cultivates and builds uniform quality mycelium. The grown mycelium mat is then compressed and shaped into a form of alternative leather. After several compression processes, the surface of the alternative leather is coated to create a smooth alternative leather. AI smart farms that combine optimal growing conditions and cultivation techniques to produce the maximum number of mycelium mats will form high-quality alternative mushroom leather.