Disney invests $1 billion in OpenAI to bring Star Wars, Marvel and Pixar characters to Sora AI video generator

Disney is placing a major bet on generative video, committing $1 billion to OpenAI in a deal that allows the startup to use characters from Star Wars, Marvel, and Pixar inside its Sora AI video generator, Disney announced Thursday. The three-year partnership marks a turning point for Hollywood, as one of its most powerful studios moves forward with AI despite rising tensions with unions and ongoing lawsuits related to AI training data.

“The Walt Disney Company and OpenAI have reached an agreement for Disney to become the first major content licensing partner on Sora, OpenAI’s short-form generative AI video platform, bringing these leaders in creativity and innovation together to unlock new possibilities in imaginative storytelling,” the entertainment giant said in a news release.

Under the agreement, Sora and ChatGPT Images will begin producing videos using licensed Disney characters early next year. That includes icons like Mickey Mouse, Cinderella, and Mufasa. The collaboration does not extend to talent likenesses or voices.

“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.

Discussions between Iger and OpenAI CEO Sam Altman have spanned years, Reuters reported, citing a person familiar with the talks. Disney was given early access to Sora before its public debut, allowing executives to study how AI video might fit into future products. Those early tests helped lead to the partnership, which includes new tools for Disney+ subscribers. Users will be able to create short-form videos featuring licensed characters, with a selection later made available on Disney+.

A New Era for Hollywood: Disney Puts $1B into OpenAI and Unlocks Its Characters for AI Video

As part of the investment, Disney will receive warrants to purchase additional equity in OpenAI. The company also plans to integrate ChatGPT into its internal workflows, from film production to employee tools, to increase efficiency and rethink content production.

The agreement arrives amid heightened scrutiny of generative AI in Hollywood. Creative Artists Agency publicly questioned whether OpenAI’s tools put artists at risk, while the Writers Guild of America said it will meet with Disney to understand how its members’ work might be used inside user-generated videos. The union described the deal bluntly, writing that “Disney’s announcement with OpenAI appears to sanction its theft of our work and cedes the value of what we create to a tech company that has built its business off our backs.”

The Animation Guild also raised pay concerns. Danny Lin, the guild’s president, said that even though animators do not own Disney characters, “we’re certainly the reason they exist and the reason that they have such earning potential.” SAG-AFTRA said Disney and OpenAI reached out with assurances that the partnership includes protections for likeness, voice, and performance rights. The deal adds guardrails to prevent Disney characters from being placed in inappropriate situations, and Disney plans to enforce those limits aggressively.

At the same time, Disney has been escalating its own legal actions against AI models trained on copyrighted content. Earlier today, CNBC reported that Disney sent a cease-and-desist letter to Google over alleged copyright violations. In June, Disney and Comcast’s Universal filed a lawsuit against Midjourney for using well-known studio characters in its training data.

Despite the tension, analysts say the momentum behind AI-generated content is accelerating. Emarketer’s Ross Benes said unions may struggle to slow the shift, especially as studios look for new formats to strengthen streaming platforms and reduce costs.

For Disney, this partnership signals a new chapter. It moves AI from experiment to strategy, giving the company fresh ways to reach audiences, broaden the appeal of Disney+, and tap into an emerging category of short-form user-generated video built on its most valuable characters.