A Landmark AI Deal That Could Reshape Hollywood
Walt Disney has announced a $1 billion investment in OpenAI, granting the startup access to iconic characters from Star Wars, Pixar, and Marvel for use in its Sora AI video generator. The three-year partnership marks one of the most significant alliances between Hollywood and a generative AI firm, signalling a major shift in how studios may create and distribute content.
Sora to Generate Videos With Disney Characters From 2026
Under the licensing agreement, Sora and ChatGPT Images will begin generating videos featuring classic Disney characters including Mickey Mouse, Cinderella, Mufasa, and popular heroes from the company’s major franchises. The deal explicitly excludes talent likenesses or voices, addressing ongoing industry concerns around consent and digital rights.
Disney CEO Bob Iger said the partnership will extend Disney’s storytelling capabilities “thoughtfully and responsibly”, emphasising respect for creators and copyright protection.
A Reversal in Disney’s AI Strategy
The move is a notable shift for Disney, which previously withheld its characters from OpenAI during policy negotiations around Sora’s copyright guidelines. In June, both Disney and Comcast’s Universal jointly sued AI image generator Midjourney over unauthorized use of studio-owned characters — highlighting Hollywood’s broader anxiety over AI and IP infringement.
Streaming Integration and Equity Upside for Disney
As part of the agreement, selected AI-generated videos created by users will be featured on Disney+, helping the platform tap into the booming short-form content trend. Disney will also receive warrants to acquire additional OpenAI equity, deepening its long-term strategic leverage.
The companies will use OpenAI models to build new products and customer experiences across Disney’s ecosystem, while Disney plans to deploy ChatGPT for employee workflows.
Hollywood Talent Agencies Previously Criticized Sora
The deal arrives months after Creative Artists Agency (CAA) publicly criticized Sora, arguing that the technology exposed artists to “significant risk” and questioned whether OpenAI would ensure proper credit and compensation for creators.
Keep building. Keep learning. Keep growing with StartupByDoc.