The Walt Disney Company has announced a $1 billion equity investment in OpenAI, a development that is likely to send shockwaves through the US creative industry.
Under the three-year licensing agreement with OpenAI, users will be able to access more than 200 copyrighted characters across Disney, Marvel, Pixar, and Star Wars, and make short videos using the Sora app. In addition, users will be able to turn word prompts on ChatGPT images into generated images drawing from the same intellectual property (IP).
Since the partnership was announced, Disney has confirmed that the agreement contains just one year of exclusivity. After that, Disney can make deals with other AI companies.
Until then, Disney explained that it will receive warrants to purchase additional equity. The conglomerate also plans to deploy OpenAI’s ChatGPT chatbot among employees, and use its APIs to build new products, tools, and experiences.
Disney Writers, Performers Raise Red Flags
Disney CEO Bob Iger attempted to dispel fears over the deal’s impact on creativity and control of content. Even so the Writers Guild of America and SAG AFTRA have both issued statements expressing concerns over the use of generative AI and its nexus with writers, artists, and performers. It’s an artistic spin on “will AI replace workers” mantra.
“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,” Iger said in a statement.
Integrating with Disney may give OpenAI’s Sora an edge in the competitive AI race, particularly as it relates to the legal use of enterprise creative work. Agencies and studios that care about legal clearance, distribution rights, and auditability would prioritize Sora over Google Veo, Runway, Pike, and Luma, according to Ed Gibbins, co-founder and CEO of ChaseLabs.
Competitors may rush to secure their own IP pipelines, such as Google pairing Veo with YouTube creator programs and studio licenses. Even if the deal doesn’t go through, it still accelerates the race for exclusive IP and distribution. If it does, OpenAI could lead high-value, brand-driven campaigns in the next product cycle. Disney notes the transaction is subject to final agreements, corporate approvals, and other closing conditions.
