In a landmark move that signals a major shift in Hollywood’s relationship with generative artificial intelligence, Disney has entered into a strategic partnership with OpenAI to bring its globally recognized characters to Sora, OpenAI’s AI-powered short-form video platform.
As part of the agreement, AI-generated videos created using Disney intellectual property through Sora will be made available for streaming on Disney+. The collaboration is set to span three years, marking the first time a major Hollywood studio has formally integrated its characters into an AI video ecosystem.
Disney Invests $1 Billion in OpenAI
Beyond content collaboration, Disney confirmed it will acquire a $1 billion equity stake in OpenAI, with the possibility of additional investments in the future. The media giant also plans to integrate ChatGPT across its internal operations, enabling employees to use AI-powered tools to enhance creativity, productivity, and workflow efficiency.
Disney and OpenAI will jointly develop new digital products, creative tools, and immersive storytelling experiences, combining Disney’s legacy of narrative excellence with OpenAI’s cutting-edge AI capabilities.
A Turning Point for Hollywood and AI
Disney CEO Bob Iger described the partnership as a pivotal moment for the entertainment industry.
“The rapid advancement of artificial intelligence marks an important moment for our industry. Through this collaboration with OpenAI, we will thoughtfully and responsibly extend the reach of our storytelling,” Iger said in a statement.
Disney’s decision positions it as the first major Hollywood studio to fully embrace generative video AI at this scale—crossing a line many in the industry had approached cautiously.
Context: Copyright, Compensation, and Union Concerns
For the past several years, major studios including Disney, Universal, and Warner Bros. Discovery have wrestled with unresolved questions surrounding AI:
- How generative AI models are trained
- Protection of intellectual property
- Compensation for creators and rights holders
- Potential impacts on actors, writers, and production workers
Notably, Disney and Universal are currently suing Midjourney, an AI image generator, alleging that it allows users to create images that closely replicate copyrighted characters. Midjourney has denied wrongdoing, arguing that its outputs fall under fair use protections.
Against this backdrop, Disney’s partnership with OpenAI represents a controlled, licensed, and studio-approved approach to AI-generated content—potentially setting a precedent for the rest of Hollywood.
What This Means for the Future of Entertainment
The deal suggests that instead of resisting generative AI outright, studios may increasingly seek structured partnerships that preserve creative control while unlocking new revenue streams and audience experiences.
If successful, Disney’s alliance with OpenAI could reshape how intellectual property is licensed, how stories are created, and how AI becomes embedded in mainstream entertainment.
