Major investment and new licensing deal
The Walt Disney Co. announced a $1 billion equity investment in OpenAI on Thursday, marking one of the entertainment giant’s most significant moves into generative AI to date. As part of a new three year licensing agreement, Disney will allow OpenAI’s Sora app to use more than 200 copyrighted characters from Disney, Marvel, Pixar and Star Wars beginning next year. Sora, launched in September, lets users create short videos through simple text prompts and quickly rose to the top of Apple’s App Store.
Disney CEO Bob Iger said the partnership aims to expand storytelling opportunities through AI while maintaining strong protections for creators and intellectual property. Under the agreement, Disney will also receive warrants to purchase additional equity in OpenAI and will serve as a major customer for the company’s tools.
ChatGPT deployment and new creative tools
Alongside the investment, Disney will roll out OpenAI’s ChatGPT platform to its employees and collaborate on new AI powered tools and content experiences. The companies emphasized that the deal includes safeguards to ensure responsible use of AI and to protect creative rights. OpenAI CEO Sam Altman said more detailed character controls are in development to prevent unauthorized or inappropriate use.
Some of the iconic characters that Sora users will be able to incorporate into videos include Mickey Mouse, Ariel, Cinderella, Iron Man and Darth Vader. The agreement does not extend to actor likenesses or voices. Users will also gain access to the same intellectual property when creating images through ChatGPT Images, which generates artwork based on natural language prompts.
Copyright tensions and industry wide legal battles
Disney’s partnership with OpenAI arrives as media companies escalate legal efforts to protect their intellectual property in the AI era. This week, Disney issued a cease and desist letter to Google accusing it of using protected content to train AI models without authorization. The company is also engaged in lawsuits with Universal against Midjourney over the use of AI generated characters, and it previously warned Character.AI to stop using Disney characters without permission.
Despite these disputes, the new agreement indicates Disney is open to AI collaborations when protections are clearly established. Both companies stated they are committed to user safety, creator rights and responsible development. OpenAI has pledged to maintain strict controls that prevent harmful or illegal content from being produced.
What comes next
OpenAI’s Sora app will soon feature curated selections of user generated videos on Disney+, signaling deeper integration between the companies’ platforms. As generative video tools expand and audiences seek new interactive formats, Disney appears poised to leverage AI as both a creative accelerator and a distribution opportunity.
