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Disney, OpenAI sign deal to license characters for AI videos

Summary

Disney signed a three-year agreement with OpenAI to license characters for AI-generated short videos on the Sora platform and ChatGPT.

Why this matters

The deal signals a major entertainment company's shift toward AI collaboration, potentially reshaping how content is created and shared.

Walt Disney and OpenAI announced a three-year licensing agreement Thursday allowing users to generate short videos featuring Disney-owned characters through artificial intelligence tools.

The agreement gives OpenAI access to more than 200 characters across Disney, Pixar, Marvel, and Star Wars franchises. Users can create and share AI-generated videos up to 30 seconds long using OpenAI’s Sora video platform and ChatGPT.

The deal marks a notable shift by a major entertainment company toward collaboration with AI firms. Disney and other studios have previously filed lawsuits against companies like OpenAI, Perplexity, and Anthropic, alleging the unauthorized use of copyrighted content to train AI models.

Disney continued that legal strategy Wednesday, sending a cease-and-desist letter to Google over alleged copyright infringement in its AI training practices.

As part of the OpenAI deal, Disney will invest $1 billion in equity and receive warrants for future stock purchases.

Disney CEO Robert Iger said the effort would “thoughtfully and responsibly extend the reach of our storytelling.” He added that no talent likenesses or voices are included in the agreement, citing concerns in Hollywood about AI use.

Characters included in the project range from Mickey Mouse and Elsa to Iron Man and Darth Vader. Sora, launched in September, is designed as a social platform for AI-generated short videos.

OpenAI CEO Sam Altman said the partnership demonstrates how AI developers and creators can work together. The company pledged to implement age-appropriate content controls and prevent harmful or illegal material.

The SAG-AFTRA actors union said it would monitor the agreement’s rollout, and the Writers Guild of America stated it plans to meet with Disney to discuss the licensing terms.

Beyond user-generated content, Disney plans to use OpenAI tools to develop new features for its Disney+ streaming service.

Altman said the agreement with Disney underscores the entertainment company’s position as “the global gold standard for storytelling.”

Shares of Disney rose more than 2% following the announcement.