Walt Disney announced a $1 billion investment in OpenAI and will allow the startup to use characters from Star Wars, Pixar, and Marvel in its Sora AI video generator. The deal marks a major shift that could reshape how Hollywood creates content.
The three-year partnership, revealed on Thursday, represents a significant step in the film industry’s adoption of generative AI. It also attempts to ease long-standing concerns about creative jobs and intellectual property protection.
Under the licensing agreement, Sora and ChatGPT Images will begin generating videos featuring licensed Disney characters such as Mickey Mouse, Cinderella, and Mufasa starting early next year. The deal does not include any actor likenesses or voices.
Disney CEO Bob Iger said the collaboration will extend the company’s storytelling reach through generative AI while still protecting creators and their work.
Talks Started Years Ago
Sources familiar with the discussions said Iger and OpenAI CEO Sam Altman began exploring the idea years ago. They wanted to showcase the power of generative AI when combined with Disney’s vast library of characters and stories.
Before finalizing the agreement, OpenAI gave Disney early access to Sora for evaluation. According to the source, Disney found OpenAI receptive and cooperative throughout the negotiation process.
Iger hinted at this strategy back in November during an investor call. He suggested that AI could give Disney+ subscribers new tools to create and enjoy short-form, user-generated content.
As part of the deal, selected user-generated videos will be available to stream on Disney+. This allows the platform to benefit from the rising popularity of short-video formats.
Disney will also receive warrants to purchase additional equity in OpenAI.
Broader Collaboration Across Disney
The companies plan to use OpenAI’s models to build new products and customer experiences, including tools for Disney+ customers. Disney will also deploy ChatGPT internally to support employees.
Safeguards are included to prevent Disney characters from being placed in inappropriate or harmful contexts. Disney also expects to use OpenAI tools in its film production workflows to increase efficiency.
Growing Industry Tension
The partnership arrives only months after Creative Artists Agency criticized OpenAI for exposing artists to “significant risk” through Sora. The agency raised concerns about compensation and how AI models use creative material.
Ross Benes, an analyst at Emarketer, said that any major entertainment company partnering with an AI firm will provoke backlash from labor groups. However, he noted that unions likely lack the influence to slow the rise of AI-generated media.
Earlier in the day, CNBC reported that Disney sent a cease-and-desist letter to Google over alleged copyright violations. Disney and Universal also filed a lawsuit in June against Midjourney for using well-known studio characters without permission.
