Walt Disney has entered into a groundbreaking and controversial deal with OpenAI, investing a staggering $1 billion to allow the AI startup to use iconic characters from Disney’s beloved franchises such as Star Wars, Pixar, and Marvel in its Sora AI video generator.
This pivotal three-year partnership marks a major turning point in Hollywood’s adoption of generative artificial intelligence, despite ongoing concerns about its impact on creative jobs and intellectual property rights.
The partnership will enable Sora and ChatGPT Images to start generating videos using Disney’s classic characters like Mickey Mouse, Cinderella, and Mufasa starting early next year. However, the deal does not include any talent likenesses or voices.
Disney CEO Bob Iger stated, “Through this collaboration with OpenAI, we will thoughtfully and responsibly extend the reach of our storytelling through generative AI, while respecting and protecting creators and their works.”
Iger and OpenAI’s Sam Altman have been in talks for years, exploring ways to showcase the potential of combining generative AI with Disney’s rich character library and iconic stories.
The deal also includes a new dimension for Disney+ users, where they will be able to create and consume user-generated content particularly short-form videos using AI-powered tools.
These videos will be made available for streaming on the platform, capitalizing on the growing trend for short-form video content. Disney will also receive warrants to purchase additional equity in OpenAI, further solidifying their partnership.
In addition to generating content, Disney will deploy ChatGPT for its employees to streamline internal workflows and improve efficiency in film production.
The companies have also put in place guidelines to ensure Disney characters are not depicted in inappropriate or harmful contexts.
The partnership, however, comes at a time when there is significant resistance from parts of the creative industry.
Creative Artists Agency, Hollywood’s leading talent agency, has criticized OpenAI for exposing artists to potential risks through platforms like Sora, raising concerns over fair compensation for creative professionals.
As Emarketer analyst Ross Benes stated, “An entertainment giant partnering with an AI company will inevitably invite backlash from labor groups in the entertainment industry, but unions’ power is limited, and they will likely be unable to halt the momentum of AI-produced media.”
This partnership signals a dramatic shift in the entertainment industry, with AI playing an increasingly central role in content creation.
Disney’s bold move could reshape the future of filmmaking and digital content, leveraging AI to enhance creativity while navigating the delicate balance between innovation and the protection of artistic integrity.