- Disney and OpenAI struck a three-year deal enabling the AI company to use Disney IPs.
- The partnership sparked pushback from writers and actors over rights and safeguards.
- The move marks a shift toward collaboration as Hollywood navigates the AI era.
The Walt Disney Company and OpenAI have signed a groundbreaking three-year licensing and investment deal that will enable the company’s AI features to use Disney's intellectual property in possible newer ways. As per the agreement, Disney will be investing $1 billion USD in OpenAI to become a major shareholder by buying more shares.
Under the terms of the agreement, OpenAI's Sora and ChatGPT Images will be able to create fan-prompted videos and images of “200 animated, masked and creature characters from Disney, Marvel, Pixar and Star Wars, including costumes, props, vehicles, and iconic environments,” as noted in an official press release.
Fans will be able to use characters such as Mickey and Minnie Mouse, Lilo and Stitch, Ariel and Belle, as well as heroes and villains such as Black Panther, Iron Man, Thor, Darth Vader, Luke Skywalker, as well as recent animated film favorites such as Encanto, Frozen, Moana, Toy Story and many others.
The deal excludes genuine actors' voices or likenesses, and both companies say the rollout would adhere to strong creator-rights measures. Beginning in early 2026, Disney intends to feature a selected collection of these fan-made Sora videos on Disney+.
Disney x OpenAI: Workflow Integration
Disney also intends to become a significant OpenAI user, utilizing its APIs to develop new products, tools, and experiences, including Disney+ and reportedly parts of internal workflows. As part of the wider integration, Disney will deploy “ChatGPT for its employees,” the official press release stated further.
Disney CEO Bob Iger described the agreement as an opportunity to “thoughtfully and responsibly extend the reach of our storytelling through generative AI while respecting and protecting creators and their works.” OpenAI CEO Sam Altman described the agreement as a paradigm for how AI startups and entertainment executives may collaborate ethically and boost creative potential.
Industry Reaction: Writers and Actors Raise Concerns
The Writers Guild of America (WGA) severely denounced the Disney-OpenAI agreement, claiming that it "appears to sanction" OpenAI's previous exploitation of creative work for AI training and "theft of our work." The guild intends to meet with Disney to discuss how user-generated videos may use works by its members and to preserve writers' economic interests.
SAG-AFTRA, the actors' union, recognized discussions with Disney and OpenAI regarding safeguards, but stressed its persistent concerns about AI's influence on artists. The union has stated that it will closely monitor the association to guarantee compliance with contracts and laws safeguarding performers' image, voice, and likeness rights.
Disney’s Parallel Legal Moves on AI IP
Furthermore, Disney has issued a cease-and-desist letter to Google, claiming that its AI models have generated content that infringes Disney's copyrights on a "massive scale." To preserve its intellectual property, the company has launched similar legal action against Meta, Character.AI, Midjourney, and Minimax.
The deal represents a significant shift in Hollywood's approach to generative AI, moving away from lawsuits and into a strategic partnership. It also reignites the argument about creative ownership and rightful compensation in an AI-powered world.
