Disney to invest $1bn in OpenAI, license Star Wars, Marvel and Pixar characters for Sora AI videos

Walt Disney Company has announced a $1 billion investment in OpenAI, alongside a landmark licensing deal that will allow the startup to use characters from Star Wars, Pixar and Marvel in its Sora AI video-generation tool, a development poised to reshape future content creation.

The three-year agreement, announced on Thursday, gives OpenAI the right to generate videos featuring Disney characters, including Mickey Mouse, Cinderella and Mufasa, starting early next year. Disney said the deal excludes likenesses or voices of actors and other talent.

Disney CEO Bob Iger said the collaboration would extend the company’s storytelling reach through generative AI “while respecting and protecting creators and their works.”

Negotiations between Iger and OpenAI CEO Sam Altman began several years ago, according to a source familiar with the discussions. OpenAI provided Disney with early demonstrations of Sora during those talks, with the studio reportedly encouraged by the company's willingness to engage.

Disney had already signalled the direction in November, when Iger told investors that AI would eventually allow Disney+ subscribers to create short-form user-generated content featuring Disney characters. Under the new agreement, selected user-generated videos will also be available for streaming on Disney+.

Disney will also receive warrants to purchase additional equity in OpenAI, while both companies will collaborate on new products and customer experiences. Disney plans to deploy ChatGPT internally to support film production and improve efficiency.

The deal includes guardrails to prevent Disney characters from being depicted in inappropriate scenarios. OpenAI’s tools will also be used in Disney’s internal creative workflows, though the company has not disclosed details of those applications.

Hollywood labour unions, which are closely monitoring the proliferation of AI tools, expressed concern about compensation and use of creative labour.

Danny Lin, president of the Animation Guild, said the union would raise concerns over artist compensation, noting that while animators do not own the rights to Disney characters, “we’re certainly the reason they exist and the reason they have such earning potential.”

The Writers Guild of America (WGA) said it would seek clarity from Disney about how its members’ work might be incorporated into user-generated videos. “Disney’s announcement with OpenAI appears to sanction its theft of our work,” the WGA told members.

SAG-AFTRA said both Disney and OpenAI had contacted the union to give assurances about responsible use of image, likeness, voice and performance rights. The union called the ongoing dialogue a “significant commitment” to safeguarding members’ interests.

Analysts noted that despite union concerns, efforts to limit AI-generated media may struggle to slow adoption. “They will unlikely be able to stem the momentum of AI-produced media,” said Emarketer analyst Ross Benes.

The deal comes amid intensifying legal battles over AI and intellectual property. CNBC reported that Disney recently sent a cease-and-desist letter to Google over alleged copyright infringement. Disney and Comcast’s Universal also filed a lawsuit in June against Midjourney regarding the use of studio-owned characters in its AI image-generation outputs.