Disney invests $1 billion in OpenAI, licenses Mickey Mouse to Sora AI platform

OpenAI said Thursday it reached a licensing woody with the Walt Disney Co. to usage much than 200 fashionable Disney characters including Mickey Mouse, characters from “Frozen” and Yoda from “Star Wars” successful OpenAI’s substance to video instrumentality Sora. Disney has besides agreed to put $1 cardinal successful the San Francisco AI startup.

The woody marks a important measurement successful Hollywood, arsenic a large workplace is partnering with 1 of the astir invaluable AI companies successful a three-year licensing woody that volition bring iconic characters to an AI-powered platform. Under the deal, users aboriginal adjacent twelvemonth tin make prompts connected Sora to make abbreviated videos that diagnostic the Disney characters and usage ChatGPT Images to make images of the characters successful seconds. Some of the Sora-generated videos volition beryllium shown connected Disney+. The companies said the statement does not see endowment likenesses oregon voices.

“The accelerated advancement of artificial quality marks an important infinitesimal for our industry, and done this collaboration with OpenAI we volition thoughtfully and responsibly widen the scope of our storytelling done generative AI, portion respecting and protecting creators and their works,” Disney Chief Executive Officer Bob Iger said successful a statement.

Artificial quality has been a arguable taxable successful Hollywood, arsenic originative endowment person raised concerns astir AI companies taking their enactment oregon likenesses without their support and not compensating them enough. In 2023, actors and writers went connected onslaught to summation much AI protections successful their contracts with large studios. There person besides been questions raised astir what would beryllium the due compensation for intelligence spot that could beryllium utilized to bid AI tools.

Disney has had a much contentious narration with different AI companies. Earlier this year, the institution sent a cease-and-desist missive to tech start-up Character.AI, alleging that chatbots connected the level were impersonating well-known Disney characters and generated replies that simulated those known characters and incorporated their backmost stories. Disney and Universal Pictures person besides sued AI institution Midjourney alleging that its representation generator infringed connected its copyrighted characters from franchises specified arsenic “Star Wars” and “Despicable Me.” Warner Bros. Pictures aboriginal joined the lawsuit.

This week, Disney sent a cease-and-desist missive to Google, alleging copyright infringement of the company’s characters from the tech behemoth’s AI tools.

Some amusement companies, including Lionsgate and AMC Networks, person partnered with AI companies, to assistance make much ratio successful areas specified arsenic marketing, preproduction and ocular effects work. Some creatives person besides praised AI tools, saying it has helped them trial bold ideas erstwhile they are dealing with smaller budgets.

But galore successful Hollywood person been skeptical implicit the mode AI companies person approached the usage of characters and dormant celebrities successful their tools. OpenAI launched its 2nd mentation of its text-to-video instrumentality Sora successful September and received propulsion backmost from endowment agencies, the Motion Picture Assn. and estates of dormant influential figures who raised concerns that likenesses of characters and radical were utilized without their permission.

In response, OpenAI said it would springiness much granular controls to rights holders and is moving connected a mode to compensate them for video generation. OpenAI said it has guardrails to artifact the procreation of well-known characters and a squad of reviewers who are taking down worldly that doesn’t travel its updated policy. Rights holders tin besides petition removal of content.

Having the backing of a institution similar Disney volition apt assistance boost OpenAI’s estimation successful the industry. The licensing woody includes classical Disney princesses similar Cinderella and Ariel, arsenic good arsenic characters from the worlds from specified films arsenic “Monsters Inc.,” “Toy Story” arsenic good arsenic Marvel and Lucasfilm franchises similar Black Panther and Stormtroopers.

Disney volition besides go a lawsuit of OpenAI utilizing its tools to physique products, and experiences successful areas specified arsenic Disney+. Disney employees volition besides person entree to ChatGPT, according to a station connected OpenAI’s website.

In summation to making a $1-billion equity concern successful OpenAI, Disney volition besides person warrants to acquisition further equity.

“Disney is the planetary golden modular for storytelling, and we’re excited to spouse to let Sora and ChatGPT Images to grow the mode radical make and acquisition large content,” said OpenAI’s CEO Sam Altman successful a statement. “This statement shows however AI companies and originative leaders tin enactment unneurotic responsibly to beforehand innovation that benefits society, respect the value of creativity, and assistance works scope immense caller audiences.”

OpenAI successful its station connected its website said the transaction is taxable to firm and committee approvals and dialog of definitive agreements.