How Disney's $1B OpenAI deal could reshape AI video creation
What's the story
Disney has signed a major three-year licensing deal with OpenAI, allowing over 200 of its iconic animated characters to feature in AI-generated videos created using Sora. The agreement also sees Disney taking a $1 billion equity stake in OpenAI, marking its most strategic foray into generative media. The partnership will let Sora users create short AI videos featuring popular characters like Mickey Mouse and Simba.
Streaming strategy
Disney to showcase Sora-generated clips on its platforms
Disney plans to feature curated Sora-generated clips on its own streaming platforms. The company will also use ChatGPT internally to assist teams across the organization. However, it's important to note that Disney is licensing characters, not the people who voice or portray them. This means Sora can't replicate the likeness or voice of actors like Tom Hanks as Woody from Toy Story fame.
Licensing restrictions
Disney's agreement with OpenAI comes with strict limitations
The agreement between Disney and OpenAI comes with strict limitations. The latter is also barred from using Disney movies or TV shows to train its models. This is a line that Disney has been increasingly protective of, as seen in its recent cease-and-desist letter to Google over alleged unauthorized training.
AI exploration
Disney's CEO Bob Iger on AI and intellectual property
Disney's CEO Bob Iger has said that the company wants to explore new storytelling formats powered by AI while protecting its intellectual property and the work of its creative teams. He described Sora as a controlled and "safe environment" for experimenting with Disney's catalog. The partnership is similar to Disney's previous deal with Epic Games, which brought Disney characters into Fortnite and other shared entertainment spaces.
Impact
What this deal means for AI-generated videos
Disney's $1 billion deal with OpenAI could mark a turning point for AI-generated video by bringing licensed, mainstream IP into tools like Sora. By allowing creators to use iconic characters under strict guardrails, Disney is legitimising AI video creation while setting clear limits on training data, voices and likenesses. The move could push other studios to follow, accelerate adoption of AI storytelling tools, and reshape how short-form video, fan content and branded entertainment are produced.