The Walt Disney Company is making a massive bet on OpenAI, agreeing to invest $1 billion in the AI developer. Under the deal, the media giant becomes the first major content licensing partner for OpenAI's video platform, Sora.
The partnership gives Sora users access to roughly 200 characters, props, and environments from the Disney universe. Users will be able to insert themselves into scenes—like a Star Wars lightsaber duel—or generate personalized clips, such as a birthday greeting from Buzz Lightyear. According to OpenAI CEO Sam Altman, user demand for Disney characters has been extremely high.
The agreement includes a period of exclusivity. Disney characters will be available only on Sora for a specific window, which CEO Bob Iger suggested would last about a year.
Adapting to inevitable technological shifts
During a joint appearance with Altman on CNBC, Iger described the move as a necessary adaptation to unavoidable change. He noted that resisting technological progress has never worked for any generation, and Disney has no intention of trying.
Iger drew a parallel to the early days of digital music, recalling how Disney was the first to put its content on Apple's iTunes Store. The strategy aims to participate in AI's dramatic growth rather than risking displacement, allowing the company to actively shape the technology's development.
Strict limits on voices and likenesses
Addressing concerns about protecting human talent, Iger emphasized that the license comes with strict limitations. The deal excludes character voices as well as the names and likenesses of actors.
Iger argued that the arrangement poses no threat to creative professionals, who will be compensated through licensing fees. Disney retains the right to establish and adjust safety guardrails for how its content is used within Sora—a power Altman confirmed the studio will hold.
For OpenAI, the deal represents a major validation of AI-generated content by a global media powerhouse. While Altman didn't rule out future deals with other entertainment companies, he described the Disney partnership as a wonderful starting point.
Drawing a line between partners and data scrapers
While partnering with OpenAI, Disney is simultaneously escalating its copyright enforcement against other tech giants. According to a CNBC report, the company sent a cease-and-desist letter to Google late Wednesday, alleging copyright infringement on a massive scale.
The letter claims Google has been using protected works without permission to train AI models and is distributing unauthorized copies of that content.
This move aligns with Disney's aggressive stance against unlicensed AI usage. The company has already joined Universal in a lawsuit against image generator Midjourney and previously warned startup Character.AI to stop using protected characters.
