Disney Pours $1 Billion Into OpenAI Partnership for Character-Driven AI Videos

The Walt Disney Company has announced a groundbreaking $1 billion investment in OpenAI, coupled with a licensing agreement that will bring beloved Disney characters to the AI-powered video platform Sora. This three-year deal marks one of Hollywood’s most significant commitments to artificial intelligence technology, allowing users to generate short-form videos featuring over 200 characters from Disney’s extensive portfolio.
Under the terms of the agreement announced Thursday, Sora users will be able to create AI-generated videos featuring iconic characters from Disney, Marvel, Pixar, and Star Wars franchises. These user-prompted social videos can be viewed and shared across platforms, though the deal explicitly excludes any use of talent likenesses or voices, addressing concerns about actor rights.
Disney’s involvement extends beyond content licensing. The entertainment giant will become a major customer of OpenAI’s suite of products, utilizing AI tools to develop new consumer experiences and deploying ChatGPT internally for employee use. This multifaceted approach signals Disney’s commitment to integrating AI across its operations.
CEO Bob Iger emphasized the company’s measured approach to this technological shift. He stated that the collaboration represents a thoughtful and responsible way to extend Disney’s storytelling capabilities through generative AI while maintaining protections for creators and their work. This statement appears designed to address concerns from creative professionals about AI’s impact on the entertainment industry.
The partnership comes as Hollywood has generally maintained distance from AI companies, concerned about data usage and potential conflicts with labor unions. OpenAI has been actively courting major studios, and this Disney deal represents a significant breakthrough in bringing traditional entertainment companies into the AI era. The updated Sora platform, launched in September as an invitation-only social app, allows users to generate clips from text prompts and even create AI avatars of themselves for video integration.