Disney has signed a landmark three-year licensing agreement with OpenAI to let consumers make AI-generated videos and images of its characters, and a selection of those vids will stream in Disney+. 

This is a wide-ranging deal, and a major turning point in the typically fraught relations between media companies and AI firms. 

As part of the partnership, Sora and ChatGPT users will be allowed to generate images and short videos using more than 200 characters from Disney, Marvel, Pixar and Star Wars. The licensing deal also includes costumes, props, vehicles and environments from its IPs—so Star Wars fans could presumably create videos with lightsabers and Death Star interiors. Users could then share these videos and images to their social media channels. 

The deal does not include any talent likenesses or voices, so don’t expect fan art using Robert Downey Jr.’s Iron Man, or James Earl Jones’ iconic Darth Vader voice. 

Disney and OpenAI expect that Sora and ChatGPT Images will start generating content inspired by Disney’s licensed characters early next year. The long list of IPs and characters covered in the deal include Mickey Mouse, Stitch, Ariel and characters from hot franchises Toy Story, Frozen, Inside Out and Monsters Inc. OpenAI has pledged to continue implementing measures to make sure the characters aren’t used to create illegal or harmful content, according to a release. 

“The rapid advancement of artificial intelligence marks an important moment for our industry,” said Bob Iger, CEO of The Walt Disney Company. “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.” 

The news clarifies what Iger was hinting at during the recent Q4 earnings call when he teased that Disney+ users could soon use AI to make their own short-form user-generated content, as the deal will add a curated selection of the Sora-generated videos on Disney+. This seems to be a continuation of a strategy Disney+ pioneered earlier this year when it tested adding user-generated content from YouTube curated by pocket.watch. 

Disney is making a huge US$1 billion equity investment in OpenAI, and will receive rights to purchase additional equity. (The transaction is subject to board approvals and closing conditions.) The House of Mouse will also become a “major customer” of OpenAI. This involves “using its APIs to build new products, tools and experiences, including for Disney+, and deploying ChatGPT for its employees,” Disney said in a release. 

Disney included this image in a release about the news. This example shows off how consumers could make images and videos featuring iconic Star Wars props, locations and characters. Courtesy of Disney and Sora.

This is one of the first examples of major IP owners in the kids industry playing nice with AI companies—teaming up with them instead of battling it out with court challenges. Until now, image- and video-generating platforms like Midjourney have mainly been accused of using IP like Disney’s without owners’ consent. Disney, NBCUniversal and Warner Bros. Discovery filed lawsuits against Midjourney and Chinese AI company MiniMax earlier this year for allegedly infringing on their copyrights and training models on stolen art.

But by working with an AI company, Disney is catching up to the consumers who have already been using AI to make unauthorized—and unprofitable for Disney—AI-generated art and videos featuring its characters. The House of Mouse will regain control over how their IPs are being used and generate profit from folks making content featuring characters like Mufasa and Mickey Mouse.

Disney going all in on AI could be a roadmap for a whole new licensing avenue for brand owners who are in many cases having a tougher time inking lucrative deals. (And some AI companies have deep pockets; OpenAI has a valuation of US$500 billion, according to Reuters.) It’s also a partnership that goes further than just selling content to AI companies to train their models, which doesn’t give brand owners much beyond a licensing fee. 

“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,” said Sam Altman, co-founder and CEO of OpenAI. 

Images courtesy of Disney and Sora.