On Thursday, Walt Disney and OpenAI announced a groundbreaking three-year licensing agreement, enabling users to create short videos with beloved Disney characters using artificial intelligence.
This deal is a first for a major entertainment company, allowing the use of its iconic characters like Mickey Mouse, Marvel superheroes, and Star Wars’s Darth Vader in AI-generated content.
This partnership signifies a major shift in an industry that has typically been in legal disputes with AI companies.
Disney and other entertainment giants have been suing AI firms like OpenAI, Perplexity, and Anthropic for allegedly using their content unlawfully to train AI technologies.
On Wednesday, Disney furthered its legal actions by sending a cease and desist letter to Google over the unauthorized use of its intellectual property to train AI models.
For OpenAI, this deal surfaces during a critical period, as it faces scrutiny regarding its business model’s sustainability, with operational costs surging faster than revenue, despite nearing one billion daily users globally.
Through this agreement, fans can create and share AI-generated content featuring over 200 characters from Disney, Marvel, Pixar, and Star Wars via OpenAI’s Sora video platform and ChatGPT.
The partnership includes a $1 billion equity investment by Disney in OpenAI, along with options to acquire more shares in the ChatGPT developer.
Disney shares climbed nearly two percent following the announcement.
“The rapid evolution of AI marks a pivotal moment for our industry,” said Disney CEO Robert Iger, noting the collaboration would “extend our storytelling thoughtfully and responsibly.”
Characters available for fan projects include Mickey Mouse, Minnie Mouse, Elsa from Frozen, and Marvel heroes such as Iron Man and Captain America, along with Star Wars figures like Darth Vader and Yoda.
The agreement excludes the likenesses and voices of actors, addressing Hollywood’s concerns over AI’s impact on the creative sector.
“This is no threat to creators—in fact, it honors and respects them, partly due to the licensing fee,” Iger told CNBC.
– 30 seconds –
In a joint CNBC interview with OpenAI CEO Sam Altman, Iger stressed that the deal limits videos to 30 seconds and excludes longer productions.
Beyond licensing, Disney will use OpenAI’s technology to develop new offerings for Disney+ and provide ChatGPT access to its employees.
“Disney is the global benchmark for storytelling,” said OpenAI CEO Sam Altman. “This agreement exemplifies how AI firms and creative leaders can collaborate responsibly.”
Both companies are committed to responsible AI use, with OpenAI promising age-appropriate policies and controls to prevent illegal or harmful content and protect creator rights.
In Disney’s complaint against Google, OpenAI’s main competitor, Disney accuses Google of massive copyright infringement by copying content without permission to train AI models.
“We’ve been diligent in protecting our IP and have pursued other companies that didn’t value it, and this is another instance of us doing just that,” Iger told CNBC.
