Walt Disney is set to invest $1 billion in OpenAI, allowing the startup to utilize characters from Star Wars, Pixar, and Marvel in its Sora AI video generator. This agreement may significantly alter Hollywood’s content creation landscape.
Announced on Thursday, the three-year collaboration marks a major step in Hollywood’s integration of generative AI, addressing concerns about AI’s impact on creative jobs and intellectual property.
As part of the deal, Sora and ChatGPT Images will start producing videos with licensed Disney characters like Mickey Mouse, Cinderella, and Mufasa early next year. The agreement excludes any likenesses or voices of talent.
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“Through this partnership with OpenAI, we will responsibly and thoughtfully expand our storytelling reach using generative AI, while respecting creators and their works,” stated Disney CEO Bob Iger.
Hollywood’s unions, closely observing the rising use of generative AI, expressed cautious reactions to the deal.
Deal in Progress
Iger and OpenAI’s Sam Altman initiated talks years ago to explore the potential of combining generative AI with Disney’s characters and narratives, according to a source familiar with the discussions.
Before the official launch, OpenAI provided Disney with early previews of its image-generation tool Sora. The source, who wished to remain anonymous, noted that Disney found OpenAI open to constructive dialogue.
Iger hinted at part of the strategy during a November investor call, revealing that AI would enable Disney+ users to create and consume user-generated content, particularly in short form.
The agreement with OpenAI will allow select user-generated videos to be streamed on Disney+, leveraging the growing demand for short-form video content.
Disney will also gain warrants to purchase additional equity in ChatGPT’s creator.
The companies will employ OpenAI’s models to develop new products and consumer experiences, including for Disney+ subscribers. Disney will also integrate ChatGPT for employee use.
The deal includes safeguards to prevent inappropriate portrayals of characters. Disney plans to use OpenAI’s tools internally to enhance film production efficiency, the source said. This partnership follows criticism from the Creative Artists Agency, which accused OpenAI of exposing artists to risks through Sora and questioned compensation for creative professionals.
Animators Express Concerns Over Compensation
Danny Lin, president of the Animation Guild, highlighted compensation for artists as a concern the union plans to address.
Although animators do not own the rights to Disney characters, “we are certainly the reason they exist and hold such earning potential,” Lin asserted.
The Writers Guild of America intends to meet with Disney to discuss the extent of its members’ contributions to user-generated videos.
“Disney’s announcement with OpenAI appears to legitimize the theft of our work, handing over the value we create to a tech company profiting from our efforts,” WGA leaders expressed in a note to members.
SAG-AFTRA, representing actors and other entertainment workers, mentioned that Disney and OpenAI reached out to ensure ethical and responsible technology use. “The ongoing dialogue shows a significant commitment to considering SAG-AFTRA members’ concerns in applying protective measures to image, likeness, voice, performance, and intellectual property rights,” the union stated.
Emarketer analyst Ross Benes, however, noted that unions have limited power and “are unlikely to halt the momentum of AI-generated media.” Earlier, CNBC reported Disney sent a cease and desist letter to Google, accusing it of copyright infringement. Disney and Comcast’s Universal previously filed a lawsuit against AI photo generation firm Midjourney for utilizing the studios’ iconic characters.
