Disney Invests $1 Billion in OpenAI in Three-Year Partnership

Disney is making a major investment in OpenAI, committing $1 billion and allowing the AI platform to use its characters for user-generated short videos.

The deal runs for three years and lets OpenAI’s Sora platform generate videos featuring more than 200 characters from Disney, Marvel, Star Wars, and Pixar. Some of these videos will also be available to stream on Disney+.

The announcement comes after Disney sent a cease-and-desist letter to Google. Disney accused the tech giant of “infringing Disney’s copyrights on a massive scale” by using its characters and content in AI systems like Gemini, Nano Banana, and Veo.

The letter included dozens of images showing Google-generated content featuring characters such as Darth Vader, Homer Simpson, and Spider-Man. A Google spokesperson did not immediately respond to a request for comment.

According to a person familiar with the arrangement, OpenAI will pay Disney to use characters including Mickey Mouse, Elsa, and Darth Vader in Sora. The deal does not use the likenesses or voices of actors, which avoids more complicated rights issues. Disney also set rules for how its characters can appear in AI-generated videos, including restrictions on content related to drugs, alcohol, sex, and interactions with other companies’ properties.

“Disney is trusting OpenAI to work with them to address problems that may arise from AI-generated videos,” the source said. They noted that because AI outputs can be unpredictable, some videos might still violate Disney’s standards, particularly at the start.

In addition to the $1 billion investment, Disney will receive warrants to buy more stock in OpenAI at its current $500 billion valuation.

The deal highlights Disney’s careful approach to AI, combining partnerships with companies it trusts while taking legal action against others that allegedly misuse its content.

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