Disney Invests $1 Billion in OpenAI

The Walt Disney Company is making a $1 billion equity investment in OpenAI and will become the first major content licensing partner on Sora, OpenAI’s short-form generative AI video platform.

As part of a three-year licensing agreement, Sora will be able to generate short, user-prompted social videos drawing on more than 200 Disney, Marvel, Pixar and Star Wars characters that can be viewed and shared by fans. A selection of these fan-inspired Sora short-form videos will be made available to stream on Disney+. Also, ChatGPT Images will be able to turn a few words by the user into fully generated images in seconds from the same IP. The agreement does not include any talent likenesses or voices.

Alongside the licensing agreement, Disney will become a major customer of OpenAI, using its APIs to build new products, tools and experiences, including for Disney+, and deploying ChatGPT for its employees.

The transaction is subject to the negotiation of definitive agreements, required corporate and board approvals and customary closing conditions.

“Technological innovation has continually shaped the evolution of entertainment, bringing with it new ways to create and share great stories with the world,” said Robert A. Iger, CEO of The Walt Disney Company. “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. Bringing together Disney’s iconic stories and characters with OpenAI’s groundbreaking technology puts imagination and creativity directly into the hands of Disney fans in ways we’ve never seen before, giving them richer and more personal ways to connect with the Disney characters and stories they love.”

“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,” added 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.”