(CNN) — Disney is taking a $1 billion equity stake in OpenAI, while also striking a deal that would allow its famous characters be used on Sora, the AI company’s video generation platform.
Disney’s investment in OpenAI is the first such major licensing agreement for Sora.
Under the agreement, users of OpenAI’s shortform video-generating social media network Sora will be allowed to make videos using more than 200 Disney animated characters. Those characters including Mickey and Minnie Mouse, Disney Princesses like Ariel, Belle, and Cinderella, characters from Frozen, Moana, and Toy Story. Animated characters from Marvel and Lucasfilm, including Black Panther and Star Wars characters like Yoda are included as well – although the agreement does not include any talent likenesses or voices.
Users of OpenAI’s popular chatbot ChatGPT will also be able to ask the bot to create images using the Disney characters.
“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 Robert A. Iger, CEO said as part of a statement.
OpenAI, which has come under scrutiny for copyright violations – and also for striking massive ‘circular’ deals leading to fears of an AI bubble – said the deal shows how the creative community and AI can get along.
“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,” said Sam Altman, co-founder and CEO of OpenAI. “This agreement shows how AI companies and creative leaders can work together responsibly to promote innovation that benefits society, respect the importance of creativity, and help works reach vast new audiences.”
Shortly after the announcement, Iger and Altman both sat down with CNBC’s David Faber, during which the Disney boss stressed that the deal “does not, in any way, represent a threat to the creators.”
“In fact, the opposite, I think it honors them and respects them, in part because there’s a license fee associated with it,” Iger said, later adding that the goal is to “continue to honor, respect, value the creative community in general.”
Iger also stressed that the deal allows Disney to “be comfortable that OpenAI is putting guardrails essentially around how these are used,” adding that, “really, there’s nothing for us to be concerned about from a consumer perspective.” Altman, too, stressed the presence of guardrails, telling Faber that “it’s very important that we enable Disney to set and evolve those guardrails over time, but they will, of course, be in there.”
The deal is exclusive, per Iger, at least in part. The Disney CEO hinted that “there is exclusivity, basically, at the beginning of the three-year agreement,” but remained mum on what that means. Asked if OpenAI is pursuing similar deals with other companies, Altman said, “I won’t rule out anything in the future, but we think this alone is going to be a wonderful start.”
Disney has previously sued AI companies for using their intellectual property. On Monday, the company sent Google a cease and desist letter, according to a source familiar with the situation.
The cease and desist letter claims the company’s AI products, including its image and video generating products Veo and Nano Banana, are infringing Disney’s copyrights “on a massive scale,” by allowing users to create images and videos depicting their characters. The letter alleges that Google has “refused to implement any technological measures to mitigate or prevent copyright infringement.”
In response, a Google spokesperson said they have “a longstanding and mutually beneficial relationship with Disney, and will continue to engage with them.”
More generally, we use public data from the open web to build our AI and have built additional innovative copyright controls like Google-extended and Content ID for YouTube, which give sites and copyright holders control over their content.”
Disney had already sent similar cease and desist letters to Meta and Character.AI. In June, Disney and Universal sued AI photo generation company Midjourney, alleging the company violated copyright law.
This story has been updated with additional developments and context.
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