A liquid crystal light valve (LCLV) is an optically controlled spatial light modulator that allows recording of dynamic holograms. Almost all known LCLVs operate in the visible range of the spectrum. In the present work we demonstrate a LCLV operating in the infrared. The interaction of signal and pump waves is studied for different applied voltages, grating spacings, and intensities of the recording beams. A fourfold amplification of the weak signal beam is achieved. The amplitude of the refractive index modulation Δn=0.007 and nonlinear coupling constant n₂=-1 cm²/W are estimated from the experimental results. External phase modulation of one of the recording beams is used for a further transient increase of the signal beam gain.