Disney’s $1 Billion Bet: AI Videos Featuring Iconic Characters

The Walt Disney Company has placed a $1 billion bet on artificial intelligence through an investment in OpenAI and a character licensing deal for the Sora video platform. The agreement grants access to more than 200 characters spanning Disney, Marvel, Pixar, and Star Wars properties for AI-generated content.
The three-year partnership announced Thursday enables Sora users to create short social videos featuring Disney characters based on text prompts. These AI-generated clips can be viewed and shared by fans, representing a new form of audience engagement. The licensing terms specifically exclude any reproduction of talent likenesses or voices.
Disney’s engagement with OpenAI encompasses multiple business dimensions. The entertainment giant will deploy OpenAI’s tools for new product development and customer experiences, while implementing ChatGPT for employee productivity across the organization. This comprehensive approach signals Disney’s view of AI as integral to its future operations.
Bob Iger, Disney’s chief executive officer, described the collaboration as marking a significant moment for the entertainment industry. He emphasized Disney’s intention to responsibly extend its storytelling reach through generative AI while maintaining protections for creators and their work. This careful language addresses ongoing concerns about AI’s impact on creative professionals.
The entertainment industry has largely resisted partnerships with AI companies, concerned about data usage and union relations. OpenAI has pursued discussions with several major studios about Sora’s potential applications. The platform’s recent update, launched in September with invitation-only access, allows users to generate videos from text prompts, explore content from other users, and create AI avatars that can appear in videos with appropriate permissions.