Disney just gave OpenAI the keys to its entire kingdom in a shocking $1 billion move that would make Walt roll over in his grave

Disney just dropped a massive bombshell, announcing a $1 billion equity investment in OpenAI and granting users access to its entire iconic character catalog for video creation on the Sora app, as per CNBC. This move is definitely shocking, especially since Disney has been one of the most aggressive companies fighting to protect its intellectual property in the AI space.

The core of the deal is a new three-year licensing agreement that gives Sora users the ability to generate content featuring more than 200 characters from the massive Disney, Marvel, Pixar, and Star Wars universes starting next year. You’re going to be able to make short videos with characters like Mickey Mouse, Ariel, Cinderella, Iron Man, and Darth Vader simply by typing in a prompt. This dramatically changes the landscape of generative AI content, and it boosts OpenAI’s platform.

The character access doesn’t stop with Sora, either. Users will also be able to draw from the same intellectual property when using ChatGPT Images, where they can use natural language prompts to create images. This immersive approach means Disney is truly embracing the generative capabilities of the platform, standing in opposition to most Hollywood creatives in this regard.

This partnership is particularly striking because Disney has been waging a full-scale legal war against AI infringement recently

When Sora launched in September, the app rocketed to the top of Apple’s App Store, but it also kicked off a major storm of controversy as users flooded the platform with videos featuring popular brands. The Motion Picture Association even demanded that OpenAI take “immediate and decisive action” to stop unauthorized use and prevent copyright infringement.

Disney itself has been aggressive in court. The company sued the AI image creator Midjourney, alleging that the platform improperly used and distributed AI-generated characters from their movies. They also sent a cease and desist letter to Character.AI in September, warning the startup to stop using their copyrighted characters without authorization. Disney also recently sent a cease and desist letter to Google, alleging the company infringed its copyrights on a massive scale.

This deal isn’t just about letting fans play around with Mickey Mouse, though. Disney is becoming a major OpenAI customer and is deploying the ChatGPT chatbot across its own employees internally. They’re also planning to work with the technology to build new tools and experiences. Plus, as part of the agreement, Disney will receive warrants to purchase additional equity in the future, cementing its financial stake in the company.

The collaboration shows that even the biggest media giants realize the future of content creation is changing rapidly. You can even expect to see curated selections of Sora videos available to watch on Disney’s streaming platform, Disney+. After the New York Times’ AI adoption in the newsroom, this groundbreaking partnership signals a new era for how intellectual property and generative AI will interact.