$1B for AI Slop? Why Disney Is Spending Big and Bringing Its Iconic Characters to OpenAI

You’ll soon be able to make AI images and videos featuring some of Disney’s most iconic characters without worrying about getting sued for copyright infringement. Disney on Thursday announced it would be bringing over 200 of its animated characters to OpenAI’s ChatGPT and Sora services, letting AI users create images and videos of their favorites from Marvel, Pixar and Star Wars. 

Disney will also make a $1 billion equity investment in OpenAI, setting the stage for a potentially powerful partnership between giants in entertainment and artificial intelligence.

In the same week Disney announced it’s going into business with OpenAI, we learned Disney is putting another major AI player on notice. Disney on Wednesday slapped Google with a cease-and-desist letter, claiming Google’s new AI models, such as nano banana pro, are infringing on Disney’s copyright on a “massive scale.” 

Disney’s partnership with OpenAI and legal action against Google are emblematic of the different ways that owners of intellectual property are dealing with AI amid growing legal and ethical concerns. Here’s what you need to know.

Watch this: How to Use Sora 2 by OpenAI: A Step-by-Step Guide

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Why is Disney partnering with OpenAI?

Sora is the sister app to ChatGPT. It’s an AI social media app, letting its users create and share AI-generated videos. Its popularity skyrocketed after its September launch, with the app quickly reaching the No. 1 spot in the Apple and Google Play stores at the height of its popularity this fall.

AI models like Sora have been frequent targets of copyright infringement lawsuits, with copyright holders claiming AI companies are allowing their users to create unauthorized ultrarealistic versions of their protected characters. Disney is currently suing Midjourney AI for this, calling the AI firm “a bottomless pit of plagiarism.” With this new deal, Disney is giving OpenAI explicit permission for Sora to use its intellectual property. (Disclosure: Ziff Davis, CNET’s parent company, in April filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.)

From what we know so far of the three-year licensing deal, Sora users will have access to over 200 “animated, masked and creature” characters from its most popular franchises beginning in early 2026. Marvel superheroes, Disney princesses and Star Wars icons will all be replicable in AI video clips. Environments (like the world of Encanto), costumes, props and vehicles are also included.

However, talent likeness — meaning the likenesses of real humans in Disney’s TV shows and movies — is not part of this deal, nor are voices. Theoretically, that means you could create an AI video of Rocket Raccoon, but it wouldn’t include Bradley Cooper’s voice.

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The deal also makes Disney “a major customer” of OpenAI. Disney employees will have access to ChatGPT, and the entertainment company will use APIs to “build new products, tools and experiences.” Part of that deal will apply to Disney Plus, with the company saying its Disney Plus streaming subscribers will be able to watch select Sora AI videos on the Disney Plus app. Disney did not immediately respond to a request for comment on other potential use cases for OpenAI’s technology.

Copyright concerns with AI

Part of why the Sora app is so popular is its ability to create extremely realistic depictions of people, which drew a lot of concerns over its deepfake abilities. Celebrities and public figures have been outspoken about the potential harms. The estate of civil rights leader Martin Luther King Jr., actor Bryan Cranston and the actors’ union SAG-AFTRA have all reached out to OpenAI with concerns.

Read more: Why Time Magazine Dubbed ‘AI Builders’ Person of the Year

Disney and OpenAI said in their statements that the companies “affirmed a shared commitment to maintaining robust controls” to prevent Sora users from creating illegal or harmful content. OpenAI did not immediately respond to a request for comment on the nature of those controls.

“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,” Disney CEO Bob Iger said in the press release.

For more, check out our guide to copyright and AI and the best AI video generators.