Disney inks $1 billion investment and licensing deal with OpenAI

The Walt Disney Company has announced a groundbreaking partnership with generative AI leader OpenAI, which includes a $1 billion equity investment in the startup and a three-year licensing agreement that will fundamentally change how fans interact with Disney’s intellectual property.

The deal, which makes Disney the first major content partner for OpenAI’s text-to-video model Sora, allows users to create short, fan-inspired videos featuring over 200 iconic characters from the Disney, Marvel, Pixar, and Star Wars universes.

A pivot from litigation to licensing

The agreement marks a dramatic strategic shift for Disney. The company had previously been aggressively pursuing legal action and sending cease-and-desist letters to other AI firms, including one recently sent to Google, over the unauthorized use of its copyrighted characters for AI training.

Now, it is setting a new precedent by proactively monetizing and controlling its most valuable asset in the AI age.

Starting in early 2026, Sora users will be able to generate short video clips featuring characters like Mickey Mouse, Iron Man, Cinderella, and Luke Skywalker.

Disney emphasized that the agreement includes strict guardrails. It explicitly excludes the likenesses and voices of specific actors and performers and requires the use of content filters to prevent the generation of harmful, illegal, or politically sensitive material.

In a unique twist, a curated selection of the best fan-created Sora short-form videos will be made available for streaming on the Disney+ platform, turning user-generated content into a new form of viewer engagement.

More than just characters

Beyond the character licensing, the deal establishes a broad technological partnership:

New Major Customer for OpenAI: Disney will become a "major customer" of OpenAI, deploying the technology, including ChatGPT for internal use by employees, and integrating OpenAI's APIs into new products and experiences across its businesses, including Disney+.

Equity Investment: The $1 billion investment secures Disney a minority equity stake in OpenAI, providing a significant financial stake in the future growth of generative AI technology.

OpenAI CEO Sam Altman called the partnership proof that "AI companies and creative leaders can work together responsibly to promote innovation that benefits society." On the other end, Disney CEO Bob Iger framed the move as a thoughtful way to "extend the reach of our storytelling through generative AI, while respecting and protecting creators and their works."