Disney Embraces Generative AI with $1 Billion OpenAI Investment
In Focus
- OpenAI Disney deal gives Sora users access to 200+ characters
- Sora app users will access Disney characters starting 2026
- Disney plans to obtain additional equity in OpenAI
Walt Disney plans to invest $1 billion in OpenAI in an equity investment deal that brings Disney’s copyrighted characters to the Sora AI app. According to CNBC, the three-year OpenAI Disney deal will give Sora app users access to over 200 characters across Disney, Pixar, Marvel, and Star Wars from 2026.
Bringing Storytelling to Generative AI
News of Disney’s and OpenAI Sora video collaboration come months after the AI firm launched its most advanced AI video generation model, Sora 2 and the Sora app. The app allows users to create immersive short-form videos by entering prompts.
“The rapid advancement of artificial intelligence marks an important moment for our industry, and 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,” Disney CEO Bob Iger said as stated in CNBC.
The collaboration between OpenAI and Disney represents a major step in Hollywood’s appreciation of generative AI. However, many creatives still worry about the impact the technology could have on intellectual property rights. Disney plans to obtain warrants for additional equity and intends to become a key OpenAI customer.
Disney and OpenAI Prioritize Creator’s Safety
Both Disney and OpenAI have confirmed their commitment to using AI in a way that prioritizes the “safety and rights of creators” and “respects the creative industries.” Additionally, OpenAI is expected to have robust controls to ensure that harmful or illegal content is not created on its platforms.
“Disney is the global gold standard for storytelling, and we’re excited to partner to allow Sora and ChatGPT Images to expand the way people create and experience great content,” Altman said as per CNBC.
Sora quickly became the App Store’s most downloaded app soon after its launch in September 2025. Its popularity quickly became controversial as videos with popular characters flooded the platform.
In October 2025, Motion Picture Association said that OpenAI needed to act immediately to avoid infringing on copyrights. In response to these concerns, CEO Sam Altman announced some changes to the Sora app.
“We will give rights holders more granular control over generation of characters, similar to the opt-in model for likeness but with additional controls,” he said in a blog posted on his blog.
Protecting Intellectual Property
AI startups have been changing the way audiences interact with content online, and in some instances, their AI-powered tools have infringed on copyrights. Media firms like Disney and New York Times have taken legal action against some AI companies to protect their intellectual property.
For instance, Universal and Disney have filed a lawsuit against Midjourney, an AI image creation platform, for using and distributing AI-generated characters from their movie content without authorization. Earlier this month, the New York Times sued Perplexity AI for using and profiting from its content unlawfully.
In September 2025, Disney sent a cease or desist warning to Character.AI after the AI startup allegedly used its copyrighted characters illegally. With the latest Disney Sora licensing update shows Disney isn’t entirely avoiding AI.
