Disney Inks Blockbuster $1B Deal With OpenAI, Handing Characters Over To Sora

Disney has put its chips in on AI.

The Hollywood giant has signed a major deal with OpenAI, investing $1B in the artificial intelligence giant and handing over characters from Frozen and Star Wars to generative AI video app Sora.

It is comfortably the most significant collaboration between a Hollywood studio and an AI company to date, and suggests Disney has taken the view: if you can’t beat them, join them.

The three-year licensing agreement will allow Sora users to create bespoke fan videos with the likes of Captain America, Yoda, and Moana. A selection of these videos will stream on Disney+, which the company hinted at during an earnings call last month.

Sora 2, the most sophisticated iteration of the app, caused outrage among rights holders when it launched in October. It adopted an opt-out policy, meaning IP was usable on the app until a rights holder issued a removal request.

 

Disney is now opting in — and in a big way. It is the first major content licensing partner on Sora, which enables users to create short-form videos with text prompts.

Disney will also become a major OpenAI customer, using its tech to build new products, tools, and experiences, including for Disney+, and deploying ChatGPT for its employees. The deal does not, however, allow OpenAI to train its machine learning models on Disney IP.

Disney CEO Bob Iger said: “Technological innovation has continually shaped the evolution of entertainment, bringing with it new ways to create and share great stories with the world.

“The rapid advancement of artificial intelligence marks an important moment for our industry, and 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.

“Bringing together Disney’s iconic stories and characters with OpenAI’s groundbreaking technology puts imagination and creativity directly into the hands of Disney fans in ways we’ve never seen before, giving them richer and more personal ways to connect with the Disney characters and stories they love.”

Sam Altman, co-founder and CEO of OpenAI, added: “This agreement shows how AI companies and creative leaders can work together responsibly to promote innovation that benefits society, respect the importance of creativity, and help works reach vast new audiences.”

Disney characters available to use on Sora will include Mickey Mouse, Minnie Mouse, Lilo, Stitch, Ariel, Belle, Beast, Cinderella, Baymax, Simba, Mufasa, as well as characters from the worlds of Encanto, Frozen, Inside Out, Moana, Monsters Inc., Toy Story, Up, Zootopia, and many more.

Also featured will be animated or illustrated versions of Marvel and Lucasfilm characters like Black Panther, Captain America, Deadpool, Groot, Iron Man, Loki, Thor, Thanos, Darth Vader, Han Solo, Luke Skywalker, Leia, the Mandalorian, Stormtroopers, Yoda, and more.

What appears to be off the table is exploiting the performances of actors, with the press release noting that Disney and OpenAI will “respect the rights of individuals to appropriately control the use of their voice and likeness.”

The release added: “OpenAI and Disney have affirmed a shared commitment to maintaining robust controls to prevent the generation of illegal or harmful content.”