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Arts & Entertainment

Disney and OpenAI strike $1B deal to support fan-generated content

A giant water tower with Mickey ears says "Walt Disney Studios."
The Walt Disney Company has invested $1 billion in OpenAI’s Sora video-generation tool.
(
Bertrand Guay
/
Getty Images
)

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The Walt Disney Company has invested $1 billion in OpenAI’s Sora video-generation tool, making it the first major media company to license its intellectual property to an AI system.

Household names like Mickey Mouse, Darth Vader, Iron Man and Cinderella are just some of the several hundred characters that are included as part of this three-year licensing deal that allows fans to generate and share videos with these characters, using Sora.

“This is very much a situation of if you can't beat them, join them,” said Erik Barmack, AI columnist for The Ankler. He added that the media conglomerate’s characters were being generated in videos by Sora users already, and the company wants to engage those users while also having its own guardrails in place.

Currently, vague limitations have been outlined by Disney CEO Robert Iger in the deal, including a ban on the use of character voices and on how long a video’s duration can be. Barmack said there will be blocking that Disney will likely define what is or isn’t appropriate for a Disney character.

“They are not going to put Lilo and Stitch into adult situations. But those guardrails have not been published as part of this deal yet," he said.

Disney also will become a “major customer” of OpenAI and use its technology to build new products, tools and services. It also will roll out ChatGPT for employee use. Both companies said they are committed to responsible use of AI that protects the safety of users and the rights of creators. As part of the deal, some user-generated Sora videos will be made available on the Disney+ streaming service.

Learn more

Listen to our interview with Erik Barmack, AI columnist for The Ankler on AirTalk with Larry Mantle.

Listen 7:40
Disney’s big investment in OpenAI
The agreement makes the Walt Disney Co. the first major content licensing partner for Sora, which uses generative artificial intelligence to create short videos.

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