Walt Disney has announced a groundbreaking $1 billion investment in OpenAI, allowing the startup to use iconic characters from its Star Wars, Pixar, and Marvel franchises in the new Sora AI video generator. The partnership, revealed on Thursday, marks a significant advance in Hollywood’s integration of generative artificial intelligence, tackling industry concerns over the implications of AI on creative jobs and intellectual property rights.
Under the terms of the three-year deal, Sora, along with ChatGPT Images, will begin producing videos featuring beloved Disney characters, including Mickey Mouse, Cinderella, and Mufasa, starting early next year. Notably, the agreement does not permit the use of talent likenesses or voices.
Disney’s CEO Bob Iger expressed excitement about the collaboration, stating that it will enable the company to extend its storytelling through generative AI while ensuring the protection of creators and their works. Discussions between Iger and OpenAI’s Sam Altman reportedly commenced years ago, focusing on the potential of combining generative AI with Disney’s rich array of characters and narratives.
Leading up to this partnership, OpenAI provided Disney with early access to its Sora image-generation tool, helping facilitate open and constructive dialogue between the two entities, as shared by an anonymous source familiar with the negotiations.
Iger hinted at part of this strategy during an investor call in November, explaining that AI would empower Disney+ users by providing them with tools to create and share user-generated content, particularly in short formats. The deal will also see selected user-generated videos available for streaming on Disney+, tapping into the burgeoning interest in short-form video content.
In addition to the strategic rollout of new products and customer experiences for Disney+ subscribers using OpenAI’s models, the partnership includes provisions for Disney to use ChatGPT internally to enhance efficiency in its film production processes. Measures will also be implemented to prevent Disney characters from being portrayed inappropriately.
While this collaboration represents a forward-thinking approach, it has not been without controversy. The Creative Artists Agency, a prominent talent agency in Hollywood, raised concerns about the significant risks posed to artists by the AI-driven Sora, questioning adequate compensation for creative professionals. Emarketer analyst Ross Benes noted that despite the potential backlash from labor groups, the influence of unions may be limited in the face of the advancing momentum of AI-generated media.
In a related development, CNBC reported that Disney recently sent a cease and desist letter to Google over alleged copyright infringements, illustrating the ongoing tensions within the industry regarding intellectual property rights as new technologies emerge.