The Walt Disney Company has officially made a US$1 billion equity investment in OpenAI, the developer of ChatGPT and the AI-based video generator Sora. Alongside the investment, Disney signed a three-year licensing agreement that allows its popular characters to be used in the creation of short-form AI-generated videos.
The deal represents Disney’s most significant move to date in responding to the rapid advancement of artificial intelligence, while also signaling a broader shift in how the entertainment industry approaches generative AI.
Amid ongoing concerns over copyright, creator protection, and the future of creative jobs, Disney has chosen to engage as a strategic partner rather than position itself in outright opposition to the technology.
“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,” said Bob Iger, CEO of The Walt Disney Company.
200+ Disney Characters Licensed for Short AI Videos
Under the agreement, Sora and ChatGPT Images will be able to generate videos and images based on more than 200 characters from Disney, Pixar, Marvel, and Star Wars. These include iconic figures such as Mickey Mouse, Minnie Mouse, Cinderella, Ariel, Simba, Mufasa, Baymax, as well as characters from Frozen, Toy Story, Moana, Marvel, and Lucasfilm franchises.
The generated content will be limited to short videos of approximately 30 seconds, intended for fan creations and social media distribution. Disney emphasized that the agreement does not include the use of actors’ voices or likenesses, nor does it permit the creation of feature-length films or full cinematic works.
Selected user-generated videos will be curated and featured on Disney+, while Disney will also leverage OpenAI’s API to develop new products and experiences. In addition, ChatGPT will be deployed internally to support operational efficiency across the company.
The agreement also includes the implementation of guardrails to prevent Disney characters from appearing in illegal, harmful, or age-inappropriate content. OpenAI reaffirmed its commitment to safety policies, including the protection of intellectual property rights and controls over high-risk content.
“This agreement shows how AI companies and creative leaders can work together responsibly to promote innovation that benefits society, respect the importance of creativity, and help works reach vast new audiences,” said Sam Altman, CEO of OpenAI.
Hollywood’s Growing Concerns
Disney’s decision to partner with OpenAI comes at a time when the company is simultaneously pursuing legal action against other technology firms. Disney is known to have issued a cease-and-desist letter to Google over alleged copyright violations, and previously filed a lawsuit against Midjourney alongside Universal.
This contrasting approach underscores that Disney is not rejecting artificial intelligence itself, but rather opposing the use of AI without proper licensing and control. Under its agreement with OpenAI, Disney secures content oversight, licensing revenue, and warrants to purchase additional shares in the future.
Nevertheless, the deal has sparked strong backlash from Hollywood labor unions. The Writers Guild of America stated that the collaboration “appears to sanction its theft of our work and cedes the value of what we create to a tech company that has built its business off our backs.”
The Animation Guild and SAG-AFTRA have also voiced concerns regarding compensation, creator protections, and the use of the historical contributions of animation workers.
Bob Iger, however, emphasized that the scope of the partnership is limited. “Let’s be mindful of the fact that these are 30-second videos. We’re not talking about creating either shorts or movies,” he said.
