The Walt Disney Company announced a $1 billion equity investment in artificial intelligence firm OpenAI, marking one of the largest entertainment-tech alliances to date.
As part of a new three-year licensing agreement, Disney will let users of OpenAI’s Sora video generation app create short videos using more than 200 characters from Disney, Pixar, Marvel, and Star Wars starting next year.
Driving the news: Sora, launched by OpenAI in September, allows users to generate short videos simply by entering text prompts, and quickly surged in popularity, topping Apple’s App Store charts upon release.
- Disney CEO Bob Iger stated the deal represents a “thoughtful and responsible” way to extend Disney storytelling through generative AI, while also pledging to respect and protect creators and their works.
Go deeper: Under the agreement, Disney will also receive warrants to purchase more equity in OpenAI in the future and is set to become a major OpenAI corporate client.
- Disney plans to roll out OpenAI’s chatbot, ChatGPT, for use by its employees, and intends to use OpenAI technologies to build new tools and creative experiences, signaling deep integration into corporate operations.
State of play: The deal comes amid a wave of controversy and legal uncertainty as AI services like Sora trigger disputes over copyright and the use of popular media characters in online user-generated content.
- After Sora’s debut, the Motion Picture Association called for OpenAI to take “immediate and decisive action” to curb copyright infringement on the platform.
- In response, OpenAI CEO Sam Altman promised improved “granular control” over character generation and outlined future steps to limit copyright and brand misuse.
- Disney recently escalated its wariness of AI overreach, sending a cease-and-desist letter to Google, accusing the tech giant of using Disney’s protected works to train AI models without authorization.
- The entertainment giant has also sued AI-image creator Midjourney for alleged improper use of Disney characters and has sent legal warnings to other startups like Character.AI.
What we’re watching: Despite legal action elsewhere, Disney’s OpenAI investment suggests the company is embracing collaboration with AI platforms under clear licensing and safety terms.
- The partnership specifically excludes character likenesses and voices of on-screen talent, reducing potential licensing and likeness disputes.
What they’re saying: Both companies emphasized their shared commitment to creator rights, user safety, and “respect for the creative industries.”
- OpenAI agreed to maintain “robust controls” on its platforms to prevent the creation of illegal or harmful content.
- Some of the celebrated characters available through the agreement include Mickey Mouse, Ariel, Cinderella, Iron Man, and Darth Vader, broadening creative possibilities for users.
- Users will also be able to create images using Disney’s intellectual property through ChatGPT Images, further integrating Disney assets into generative AI tools.
