The House of Mouse has announced an unexpected $1 billion partnership with OpenAI, which will bring approximately 200 Disney characters, props, and other copyrighted materials to ChatGPT and Sora, OpenAI’s AI chatbot and video application.
Beginning in 2026, fans will have the opportunity to create videos with characters such as Deadpool and utilize iconic items like lightsabers.
Despite apprehensions from artists and creatives regarding AI, Disney CEO Bob Iger affirmed that this initiative poses no danger to creators. During an appearance on CNBC, Iger remarked, “this does not in any way represent a threat to the creators at all.”
Interestingly, while OpenAI CEO Sam Altman noted the significant demand for Disney characters on ChatGPT, it is Disney that will pay OpenAI, rather than the opposite, to incorporate its intellectual property. Details of Disney’s $1 billion equity investment in OpenAI were shared in a blog article, and Disney will also emerge as a major OpenAI client, acquiring access to new AI technologies.
Why do creatives feel threatened by generative AI?
Despite Iger’s optimistic perspective, the Disney-OpenAI alliance is likely to alarm artists skeptical of AI, who worry that studios may replace them with AI technologies. Even minimal AI utilization in films can incite backlash from creative professionals. For example, AI-generated movie posters can trigger boycotts from artists who consider generative AI to be substandard.
Yet, as previously mentioned, public sentiment about AI in creative endeavors remains uncertain. The Disney-OpenAI agreement underscores the relentless ascent of generative AI within entertainment and advertising. Although artists may oppose AI in Hollywood, industry executives are not seeking their endorsement.
In his CNBC conversation with Altman, Iger acknowledged the inevitability of AI integration, stating, “If it’s going to happen regardless, then we’d rather participate in the rather dramatic growth, rather than just watching it happen and essentially being disrupted by it.”
Importantly, the agreement does not encompass the voices of Disney characters. Including the voices or likenesses of actors could violate agreements with writers, artists, and actors, whose unions advocate for AI protections.
OpenAI and Disney referred to a “licensing fee” for the use of Disney characters. However, given Disney’s $1 billion investment, it seems unlikely that creatives will reap benefits from this arrangement. Disney could set a trend for AI firms to compensate for creative licenses, but this scenario does not apply here.
“We are not including name and likeness, nor are we including character voices,” Iger stated on CNBC’s Squawk on the Street. “And so, in reality, this does not in any way represent a threat to the creators at all, in fact, the opposite. I think it honors them and respects them, in part because there’s a license fee associated with it.”
Skepticism persists about whether the “license fee” will provide any advantages to the artists behind the characters in Sora. Doubts remain that artists, voice actors, and creators will genuinely feel “honored” and “respected” by this agreement.
By collaborating with OpenAI, Disney opens a new chapter in the AI copyright dispute
In Mashable’s tests of AI image generators, leading AI tools readily create deepfakes of beloved Disney characters. Legal disputes regarding AI copyright law are taking place globally, with Hollywood, authors, and artists contesting major AI corporations. Some cases focus on AI companies employing copyrighted works for training without authorization or compensation, while others deal with AI-generated deepfakes of characters from Disney franchises.
Early AI copyright disputes have favored AI firms, with lesser-known authors battling tech giants like OpenAI, Google, and Meta. Artists felt hopeful when Disney launched a lawsuit against AI image generator Midjourney for plagiarism, believing Disney’s legal strength could succeed where others have faltered. In the Kadrey v. Meta lawsuit, the judge pointed out weak arguments from the authors’ legal team, despite seemingly incriminating evidence.
Nevertheless, artists hoping Disney would advocate for their interests in the AI copyright conflict may need to recalibrate their expectations. Disney has opted to financially support OpenAI to convert Disney characters into AI-generated material.
The reasoning is transparent. On the same day the Disney-OpenAI deal was announced, OpenAI issued a cease-and-desist letter to Google, ordering its AI tools to cease producing content featuring Disney characters. By granting OpenAI and Sora an exclusive AI license for Disney characters, Disney is protecting its copyrights and gearing up for upcoming legal challenges.
This is not encouraging news for creators and artists concerned about AI. It is not surprising that Iger’s priorities may not align with those of actors, animators, and voice-over artists.
However, Iger insists that there is no cause for alarm, so all will be well.
Yes, all will be well.
All will be well.
All will be well.
Disclosure: Ziff Davis, the parent company of Mashable, initiated a lawsuit against OpenAI in April, accusing it of copyright infringement related to the training and operation of its AI systems.