Disney invests $1 billion in OpenAI, licensing iconic characters for AI video tool

The partnership will allow OpenAI’s Sora to generate videos featuring Star Wars, Pixar, and Marvel characters, marking a major shift in Disney’s AI strategy.

Walt Disney (DIS) announced a $1 billion investment in OpenAI on Thursday, granting the AI startup the rights to use characters from its Star Wars, Pixar, and Marvel franchises in its Sora AI video generator. The three-year deal represents a significant step for Hollywood’s adoption of generative artificial intelligence, balancing innovation with the protection of creative intellectual property.

Under the licensing agreement, OpenAI’s Sora and ChatGPT Images will begin generating videos using Disney characters such as Mickey Mouse, Cinderella, and Mufasa starting early next year. The deal specifically excludes the use of actors’ likenesses or voices. Selected AI-generated videos will also be available on Disney+, tapping into the growing demand for short-form content.

“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,” said Disney CEO Bob Iger. Disney will also implement ChatGPT internally and receive warrants for additional OpenAI equity, while jointly exploring new products and experiences for Disney+ subscribers.

The partnership marks a dramatic change in Disney’s approach to AI. Previously, the company had withheld its characters from Sora during OpenAI’s discussions on copyright policies. Earlier this year, Disney and Universal had filed lawsuits against AI image generator Midjourney for using their characters without permission.

The move comes amid ongoing industry debate over AI’s impact on creative jobs. In October, Creative Artists Agency criticized Sora, warning that AI technology could place artists at “significant risk” and questioned whether creators would receive proper compensation and credit.