Disney invests $1 billion in OpenAI, strikes licensing deal

OpenAI

Walt Disney Co. agreed to invest $1 billion in OpenAI and license iconic characters like Mickey Mouse and Cinderella to Sora, OpenAI’s short-form, artificial intelligence video platform.

As part of the three-year licensing pact, Sora will be able to generate short, user-prompted social videos that can be viewed and shared by fans, drawing from a library of more than 200 animated and creature characters from Disney, Marvel, Pixar and Star Wars, according to a statement from Disney on Thursday. The deal doesn’t cover any talent likenesses or voices.

At the same time, Disney will become a major customer of OpenAI, using its tools to build new products and experiences and deploying ChatGPT for its employees.

“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,” Disney Chief Executive Officer Bob Iger said in the statement.

Hollywood studios have been reluctant to get into business with an AI company, wary of how it might use their data and of angering the labor unions with which they work every day. But OpenAI has been talking to the industry’s largest studios, including Disney, Comcast Corp.’s Universal Pictures and Warner Bros. Discovery Inc., about the creative and commercial potential of Sora, Bloomberg News has previously reported.

The AI developer unveiled a new version of Sora in September as a standalone social app, available by invitation. As with the original Sora, released last December, users can generate short clips in response to text prompts, but the new app allows people to see videos created by others. Beyond that, users can create a realistic-looking AI avatar and voice of themselves, which can be inserted into videos made with the app by the user or their friends, with the avatar owner’s permission.