Disney and OpenAI Forge Landmark AI Partnership, Investing $1 Billion in Sora Technology
Disney is making a significant bet on the future of artificial intelligence, announcing Thursday a comprehensive licensing and investment deal with OpenAI. The collaboration will bring over 200 iconic Disney characters – including Mickey Mouse, characters from “Frozen,” and Yoda from “Star Wars” – to OpenAI’s text-to-video tool, Sora, and image generator, ChatGPT Images, while also injecting $1 billion into the San Francisco-based AI startup.
The three-year licensing agreement marks a pivotal moment for Hollywood, signaling a major studio’s willingness to partner with a leading AI company. Users can expect to generate short videos featuring beloved Disney characters as early as next year, with some Sora-generated content slated to appear on Disney+. However, the agreement explicitly excludes the use of talent likenesses or voices.
“The rapid advancement of artificial intelligence marks an important moment for our industry, and through this collaboration with OpenAI we will thoughtfully and responsibly extend the reach of our storytelling through generative AI, while respecting and protecting creators and their works,” stated Disney Chief Executive Officer Bob Iger.
This partnership arrives amidst ongoing debate and, at times, conflict surrounding artificial intelligence in the entertainment industry. Concerns over AI companies utilizing creative work without proper permission or compensation fueled the 2023 strikes by actors and writers, who sought stronger AI protections in their contracts. The question of fair compensation for intellectual property used to train AI tools remains a central point of contention, with Disney itself having previously pursued legal action against AI companies like Midjourney over copyright infringement.
OpenAI launched the second version of its text-to-video tool, Sora, in September, immediately facing pushback from talent agencies, the Motion Picture Association, and estates representing deceased figures, all alleging unauthorized use of likenesses. In response, OpenAI pledged to enhance controls for rights holders and develop a compensation mechanism for video generation. The company maintains it has implemented safeguards to prevent the generation of well-known characters and employs a review team to remove policy-violating content, with rights holders also able to request content removal.
The backing of a company with Disney’s stature is expected to significantly bolster OpenAI’s reputation within the industry. The licensing deal encompasses classic characters like Cinderella and Ariel, alongside those from “Monsters, Inc.” and “Toy Story,” as well as franchises from Marvel and Lucasfilm, including Black Panther and stormtroopers. Disney will also leverage OpenAI’s tools to enhance its own products and experiences, including those on Disney+, and is granting its employees access to ChatGPT.
Beyond the $1 billion equity investment, Disney will also receive warrants to purchase additional equity in OpenAI. “Disney is the global gold standard for storytelling, and we’re excited to partner to allow Sora and ChatGPT Images to expand the way people create and experience great content,” said OpenAI CEO Sam Altman. “This agreement shows how AI companies and creative leaders can work together responsibly to promote innovation that benefits society, respect the importance of creativity, and help works reach vast new audiences.”
The transaction remains subject to corporate and board approvals, as well as the finalization of definitive agreements, according to OpenAI. This collaboration represents a cautious yet optimistic step toward integrating generative AI into the creative process, acknowledging the need to balance innovation with the protection of artists and their work.
